6.2 Refer to Problem 6.1. Assume that the three patient servicesdepartments are adult services, pediatric services, and other services.The patient services revenue and hours of housekeeping services foreach department are as follows:DepartmentRevenueHousekeeping HoursAdult Services$3,000,0001,500Pediatric Services1,500,0003,000Other Services500,000Total$5,000,0005005,000a. What is the dollar allocation to each patient services department ifpatient services revenue is used as the cost driver?b. What is the dollar allocation to each patient services department ifhours of housekeeping support is used as the cost driver?c. What is the difference in the allocation to each department.between the two drivers?d. Which of the two drivers is better? Why?

The objective of this question is to understand how to allocate costs to different departments based…

Answered: 6.2 Refer to Problem 6.1. Assume that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Falls Creek Community Health Clinic uses the high-low method to analyze cost behavior and has determined that number of patients treated predict the clinic's total treatment costs. Determine the cost function (formula) for total treatment costs. What will the estimated treatment cost be if Falls Creek treats 1,402 patients in a month? Total Number Treatment of Patients Costs January $3,410 February $3,790 $3,574 $3,730 $4,500 1060 1180 March 1030 April 1260 May 1310 $4,294 June 1430 (Round your final answer to two decimal places)
please help me with all 3 parts, Direct Method, Stepdown Method, and Reciprocal Method Class Examples for Cost Allocation for Multiple Support Departments Example 2 Budgeted Data: Support Departments Facility Service Personnel $100,000 $60,000 6,000 8,000 5 VC or VMOH base: sq ft base: employees 25 Operating Depts Mixing $130,000 12,000 10 Canning $170,000 10,000 20 Assume that the budgeted number of square footage and budgeted number of employees equal the actual for each, respectively. The cost driver for the Facility Service department is square footage and the cost driver for the personnel department is the number of employees 1) Allocate the two support department costs to the two operating departments using a. Direct Method b. Stepdown Method c. Reciprocal Method
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11.
The graph below shows monthly data collected on facilities maintenance department costs and on the number of patient-days serviced over the past year. 50,000 45,000 Line of Best Fle 40,000 35,000 30,000 25, 000 20,000 15,000 10,000 5,000 1,000 2,000 3,00 4,000 5,000 6,000 # of Patient-Days Using 0 and 3,000 patient-days, the total cost at an activity level of 8,000 customer patient-days would be: O a. $91,000 O b. $66,860 O c. $63,360 O d. $55,000 Maintenance Department Costs
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Question: Assume that an HMO's capitation payment to PCPs is $20 PMPM, but 15% of this amount is placed in the PCP risk pool. The budgeted amount for specialty and hospital costs is $40 PMPM. The purpose of the risk pool is to encourage the PCPs to take actions that cause realized specialty and hospital costs to be less than those budgeted. Cost is measured by the amount the HMO spends on each physician's referral. There are three PCPs: Physician A, Physician B, and Physician C. Assume that each physician has 1,000 patients. Suppose Physician A's actual referral costs are $500,000, Physician B's are $540,000, and Physician C's are $620,00. Finally, suppose that no PCP will receive any funds from the risk pool if it is empty at the end of the year, but if there are referral funds left in the risk pool at the end of the year, they will be divided equally among the three physicians. 1) What is the amount of referral gain (loss) for Physician A? a. -$100,000 b. -$36,000 c. -$20,000 d.…
The Hospital La Salud forthe following data on electricity costs and the number of patients per month of the last year for you to develop a cost function. Electricity costs $5,500 5,800 Patients 1,836 2,100 2,914 1,258 1,025 1,416 2,965 2,692 1,038 Months January Feb 6,200 4,325 4,025 4,445 6,500 5,890 3,900 3,700 3,990 4,998 Sea April May Jun Jul Aug Setp Oct 950 Nov 1,100 Dec 1,564 Requirements: 1. Using the High Low Method determine the FIXED COST AND VARIABLE COST 2. EXPRESS THE COST FUNCTION SUPPOSE FOR THE FIRST TRIMESTRE OF THE ANUS, YOU HAVE PROJECTED THE FOLLOWING NUMBERS OF PATIENTS: January 2,985/ Feb 3,250/ March 4,950 Present the total cost for each projected month. 3. 4. Present the above using the DATA ANALYSIS TOOL in EXEL
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Example 1 Budgeted Data: Support Departments Janitor $415,000 12,000 VC or VMOH base: sq. ft. base: employees 25 (2) the step-down method, and Personnel $150,000 20,000 (3) the reciprocal method. 4 Operating Departments Mixing $130,000 10,000 75 Canning Determine the amount of Janitor and Personnel department costs that would be allocated to the Mixing and Canning departments' budgets using (1) the direct method $170,000 70,000 50
Below are the projected revenues and expenses for a new clinical nurse specialist program being established by a hospital. Nurses would provide education while the patient is in the hospital and home visits after patient discharge on a fee-for-service basis. Should the hospital undertake the program if its required rate of return is 12%? Year 1 Year 2 Year 3 Year 4 Total Revenue costs 100,000 150,000 200,000 250,000 700,000 150,000 150,000 150,000 150,000 600,000 (50,000) 0 50,000 100,000 100,000
Beau County Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended as follows: Metro Suburban Outlying Service Revenue ₱ 90,000 ₱ 70,000 ₱ 35,000 Variable Expenses 15,000 10,000 5,000 Controllable Fixed Expenses 30,000 25,000 10,000 Fixed Expenses controllable by others 20,000 15,000 5,000 In addition to the expenses listed above, the company has ₱6,000 common fixed expenses. The income tax expense for the year is ₱21,000. What is the segment margin associated with the Suburban Division? Show solution Group of answer choices ₱ 20,000 ₱ 35,000 ₱ 15,000 ₱ 25,000

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