If you give me true answer this general accounting question I will give you helpful rate Cedar Valley Medical Center uses a job-order costing system for all patientswho undergo treatment. The following information is available:DepartmentPre-Operative Care $98,000Operating RoomRecovery UnitBudgeted Indirect Costs Budgeted Nursing Hours5,200$75,000$720,0001,2008,400The cost driver for all indirect costs is nursing hours. The hospital uses abudgeted rate for indirect costs.The budgeted rate for indirect costs for the pre-operative care unit is:

Step 1: Definition of Budgeted Rate for Indirect CostsThe budgeted rate for indirect costs…

Answered: Cedar Valley Medical Center uses a…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 5MAD

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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.…
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Zamboanga Hospital plans to use the 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: (Refer to image) Determine the activity cost associated with Patient 2. a. P1,388 b. P 908 c. P1,816 d. P4,555
Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Budgeted Activity Activity Supplies Patient services Activity Cost Driver Surgical hours (SH) Number of patients Square feet Building cost The two main surgical units and their actual activity usage follow. Actual Activity Usage Budgeted Cost $ 2,310,000 39,000 294,000 Service General surgery Orthopedic surgery Surgical Hours 2,600 8,400 Patients 300 200 Square Feet 720 1,380 Usage 11,000 500 2,100 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit.
Activity-Based Costing for a Service Company 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 $274 per day $386 per image $61 per physician order $108 per test $940 per operating room hour The activity usage information associated with the two patients is as follows: Room and meals Radiology Pharmacy Chemistry lab Operating room Number of days Number of images Number of physician orders Number of tests Abel Putin LA Abel Putin atient. 3 days 5 images 7 orders Number of operating room hours a. Determine the activity cost associated with each patient. LA 2 tests Cheryl Umi 9 days 6 images 9 orders 4.5 hours 5 tests 6.5 hours Cheryl Umit p. Why is the total activity cost different for the two patients? apparently had a different condition that equired more extensive treatment. Thus, the activity…
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