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ces Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Service General surgery Orthopedic surgery Activity Supplies Patient services Building cost The two main surgical units and their actual activity usage follow. Actual Activity Usage Square Feet 750 Budgeted Cost $ Activity Supplies Patient services Building cost 2,700,000 30,000 368,000 Surgical Hours 2,800 12, 200 Activity Cost Driver Surgical hours Orthopedic Surgery Supplies Patient services Building cost (SH) Number of patients Square feet Patients 300 100 1. Compute activity rates using activity-based costing. Budgeted Cost 1,550 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. Budgeted Activity Usage 15,000 400 2,300 Budgeted Activity Usage Overhead cost per patient 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. General surgery -----Activity Usage----- Supplies Patient services Building cost -----Activity Usage----- -----Activity rate----- Activity Rate -----Activity rate----- Allocated Cost Allocated Cost

ces Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Service General surgery Orthopedic surgery Activity Supplies Patient services Building cost The two main surgical units and their actual activity usage follow. Actual Activity Usage Square Feet 750 Budgeted Cost $ Activity Supplies Patient services Building cost 2,700,000 30,000 368,000 Surgical Hours 2,800 12, 200 Activity Cost Driver Surgical hours Orthopedic Surgery Supplies Patient services Building cost (SH) Number of patients Square feet Patients 300 100 1. Compute activity rates using activity-based costing. Budgeted Cost 1,550 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. Budgeted Activity Usage 15,000 400 2,300 Budgeted Activity Usage Overhead cost per patient 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. General surgery -----Activity Usage----- Supplies Patient services Building cost -----Activity Usage----- -----Activity rate----- Activity Rate -----Activity rate----- Allocated Cost Allocated Cost

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 4PA: Pareto chart and cost of quality report for a service company The administrator of Liberty Hospital...
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ces Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Supplies Service General surgery Orthopedic surgery Patient services Building cost The two main surgical units and their actual activity usage follow. Actual Activity Usage Square Feet 750 Activity Budgeted Cost $ Supplies Patient services Building cost 2,700,000 30,000 368,000 Surgical Hours 2,800 12, 200 Supplies Patient services Building cost Activity Cost Driver Surgical hours (SH) Number of Orthopedic Surgery Supplies Patient services Building cost patients Square feet Patients 300 1. Compute activity rates using activity-based costing. Budgeted Cost 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. 1,550 Budgeted Activity Usage 15,000 400 2,300 Budgeted Activity Usage 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. General surgery -----Activity Usage----- Overhead cost per patient -----Activity Usage----- -----Activity rate----- Activity Rate -----Activity rate----- Allocated Cost Allocated Cost
Transcribed Image Text:ces Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Supplies Service General surgery Orthopedic surgery Patient services Building cost The two main surgical units and their actual activity usage follow. Actual Activity Usage Square Feet 750 Activity Budgeted Cost $ Supplies Patient services Building cost 2,700,000 30,000 368,000 Surgical Hours 2,800 12, 200 Supplies Patient services Building cost Activity Cost Driver Surgical hours (SH) Number of Orthopedic Surgery Supplies Patient services Building cost patients Square feet Patients 300 1. Compute activity rates using activity-based costing. Budgeted Cost 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. 1,550 Budgeted Activity Usage 15,000 400 2,300 Budgeted Activity Usage 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. General surgery -----Activity Usage----- Overhead cost per patient -----Activity Usage----- -----Activity rate----- Activity Rate -----Activity rate----- Allocated Cost Allocated Cost
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