alculate the Overhead Cost allocation using the Activity Based Costing approach. Describe each component used for calculation and why.
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During the pandemic period, several doctors and employees at Cikarang Teaching Hospital experienced changes so that the hospital had to make new recruitments which had an impact on changing the annual salaries to be as follows:
Table Attached
The average duration of the patient's stay increased by 1 day for each level because it was necessary to do a swab test both before and after the treatment and treatment. As for other data, it remains unchanged.
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- Canyon Dental Services is a specialized dental practice whose only service is filling cavities. Canyon has recorded the following for the past nine months: Month January February March April May June July August September Number of Cavities Filled 625 525 475 375 675 500 325 700 450 Total Cost $ 6,350 5,950 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate Canyon's total cost for filling 550 cavities. Required 1 Required 2 Fixed cost Variable cost per cavity filled 5,650 5,350 6,500 5,700 5,150 6,350 5,450 Complete this question by entering your answers in the tabs below. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. Note: Round your Variable cost per unit to 2 decimal places.Please help me on this question with a full explanation.An accountant has been monitoring the overall indirect service costs incurred at their company based on the number of labour hours worked. They accept that the costs follow a uniform, regular pattern so decide to use the High-Low method to calculate the Variable Costs and then the fixed costs. The have found the during the month when the lowest hours were worked ( 2083 hours) that the service costs in that low activity month was $14705. In the month when the highest hours were worked ( 4803 hours) the service costs were $18998. Calculate the Variable Cost using the high-low method. Note: Do not input the $ sign, just the decimal number to two decimal places
- Southwest Toys manufactures globes at its San Fernando facility. The company uses job costing and provides you with the following information regarding operations for April 2020: (Click the icon to view the operations information.) Assume the spoiled units have no disposal value. Read the requirements. Requirement 1. What is the unit cost of making the 35,000 globes? The unit cost of making 35,000 globes is Data table Total globes manufactured Globes rejected as spoiled units Total manufacturing cost $ - 35,000 850 700,000 X Requirements 1. 2. 3. If the spoilage is considered normal, what is the increase in the unit cost of good globes manufactured as a result of the spoilage? What is the unit cost of making the 35,000 globes? What is the total cost of the 850 spoiled units? 4. If the spoilage is considered abnormal, prepare the journal entries for the spoilage incurred. Print Done - XLet's suppose that you are making automobiles. In July there is a plant shutdown for two weeks. Factory labor, both direct (production line workers) and indirect (factory supervisor), take mandatory vacation during those two weeks. Explain, the mechanics of calculating a Predetermined Overhead Rate for this year. Which allocation base (or bases) may be used to apply overhead cost to the automobiles produced? Should the cost of the factory labor vacations be spread to all automobiles produced during the entire year? Would the cost of the vacations for the Sales and Human Resource departments also be allocated to the automobiles? What cost type of cost are these as compared to the factory worker vacation costs? How do vacation costs for Sales and HR departments flow through the Income Statement?Mary Ellis owns a small manufacturing company and would like to develop more accurate estimates for overhead expenses when making planning decisions. She is pretty sure that overhead is a mixed cost that varies with direct labour-hours but she would like to do a proper analysis to determine the variable and fixed components. She collected the following information for the past 12 months on direct labour-hours incurred and total overhead expenses. Total Overhead Costs $44,000 Month January Direct Labour-Hours 1,500 February 1,680 $ 47,200 March 1,000 $ 48,000 April 2,520 $ 51,200. May 2,700 $ 53,600 June 3,300 $ 56,000 July 3,900 $ 59,200 August 4,500 $ 61,600 September 4,200 $ 60,000 October 2,700 $ 54,400 November 1,800 $49,600 December 3,900 $ 58,400 Required: 1. Using the least-squares regression method, estimate the variable overhead cost per direct labour-hour and the total fixed overhead cost per month. (Round Fixed cost to the nearest whole doller amount and the Variable cost…
- Compute the linear cost function, relating total overhead costs to physician contact hours, using the representative observations of 200 and 300 hours. Plot the linear cost function. Does the constant component of the cost function represent the fixed overhead costs of Young and Associates? Why?Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $230 per day Radiology $185 per image Pharmacy $50 per physician order Chemistry lab $90 per test Operating room $1,030 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 6 days 3 days Number of images 5 images 3 images Number of physician orders 7 orders 2 orders Number of tests 6 tests 2 tests Number of operating room hours 9 hours 5 hours This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the activity cost associated with each patient.…Blossom Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the brake repairs Hourly wage rate Payroll taxes Setup and downtime Cleanup and rest periods Fringe benefits (a) 1 hour $11 10% of wage rate 5% of actual labor time 25% of actual labor time 20% of wage rate Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, e.g. 1.25.) Standard direct labor hours per brake repair hours 1 SU
- Claims Management Inc. provides claims processing services to several large health insurance providers. Customers who are covered by health insurance provided by one of Claims Management's partners submit their claims for health and dental services along with related documentation, and the employees at Claims Management compare their claims to the details of their benefit plans and calculate the value of the benefits owed. The company uses a predetermined variable overhead rate based on direct labour-hours. In the month of September, 15,000 claims were processed using 4,500 direct labour-hours. The company incurred a total of $4,950 in variable overhead costs. According to the company's standards, 0.25 direct labour-hours are required to process a claim, and the variable overhead rate is $1.20 per direct labour-hour. Required. 1-a. What variable overhead cost should have been incurred to process the 15,000 claims? Standard variable overhead cost 1-b. How much does this differ from the…Spaine Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Sofo Wholesale, due to large fluctuations in price. The owner of Spaine has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year: (Click the icon to view the budgeted information.) (Click the icon to view additional information.) Read the requirements. Requirement 1 and 2. Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overhead rate. First…1. What are the fees for a Basic Exam, Advanced Exam, and a Basic Exam assuming the goal is to cover only variable and fixed direct costs? Assume that the audiology department is allocated $100,000 in total overhead by the clinic, and the department director has allocated $50,000 of this amount to the three services listed above. (To answer this question, assume that the allocation of overhead costs to each service is made on the basis ofnumberof visits.) 2. What are the fees for a Basic Exam, an Advanced Exam, and a Basic Exam assuming the overhead costs must be covered? 7.2 The audiology department at Randall Clinic offers many services to the clinic's patients. The three most common, along with cost and utilization data, are as follows: Copying and distribution of this PDF is prohibited without written permission. For permission, please contact Copyright Clearance Center at www.copyright.com Healthcare Finance Variable Cost Annual Direct Annual Number per Service Fixed Costs of…
