Carol West, the nurse manager of the cystoscopy suite, was given approval to add more space to her current area by converting 500 square feet of administrative space into another cystoscopy bay. Using the information in exhibit, 12.11 below, calculate the new total indirect costs (utilities, administration, and laboratory) allocated to the Day-Op suite; Cystoscopy; and Endoscopy. Assume that there are no new additional direct costs incurred by adding the 500 square feet. Exhibit 12-11 A B C Square Feet Dept. Costs Lab Tests Utilities $400,000 Administration 4,000 $700,000 Laboratory 2,000 $750,000 Day-Op suite 4,000 $2,500,000 6,000 Cystoscopy 2,000 $575,000 2,000 Endoscopy 1,000 $300,000 1,500 Total 13,000 $5,225,000 9,500
Carol West, the nurse manager of the cystoscopy suite, was given approval to add more space to her current area by converting 500 square feet of administrative space into another cystoscopy bay. Using the information in exhibit, 12.11 below, calculate the new total indirect costs (utilities, administration, and laboratory) allocated to the Day-Op suite; Cystoscopy; and Endoscopy. Assume that there are no new additional direct costs incurred by adding the 500 square feet.
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Exhibit 12-11 |
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A |
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B |
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C |
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Square Feet |
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Dept. Costs |
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Lab Tests |
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Utilities |
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$400,000 |
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Administration |
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4,000 |
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$700,000 |
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Laboratory |
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2,000 |
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$750,000 |
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Day-Op suite |
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4,000 |
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$2,500,000 |
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6,000 |
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Cystoscopy |
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2,000 |
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$575,000 |
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2,000 |
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Endoscopy |
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1,000 |
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$300,000 |
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1,500 |
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Total |
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13,000 |
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$5,225,000 |
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9,500 |
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