Cheyenne's Medical operates three support departments and two operating units, Surgery and ER. The support departments areallocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR)departments is $271000, $158300, and $68800, respectively. Information on the hours used are as follows:AcctAdminHR SurgeryERHours in Acct2048360220Hours in Admin16812080Hours in HR8465130What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediatecalculations.)O $280035.O $282405.O $256681.O $0.

COST ALLOCATIONWhen item of cost are Identifiable directly with some products or departments such…

Answered: Cheyenne's Medical operates three…

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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A hospital analyzed their patient data in the ICU and categorized patients into two types: short-term and long-term. The standard quantities of labor and materials for each type of patient for 2011 are: Short term Long term Direct Material (lbs 9 21 Nursing labor (hrs.) 2.5 5 Standard price paid for direct materials (per lb.): $ 10.00 Standard rate for labor (per hour): $ 16.00 Variable overhead rate for ICU (per hour): $ 30.00 Fixed overhead rate for ICU (per hour): $ 40.00 **VOH and FOH are applied (used) on the basis of direct labor hours Actual operating data for 2011 is as follows: Total short-term patients: 4,000…
Allen Company has three departmentd - lawn, bush, and plowing. Allen Company uses ABC for the allocation of its three office costs (labor, gas, invoices) among the three departments. The following information is provided about the office costs. Activities , total costs, Activity-cost divers Labor , $320,000, 8,000 hours Gas, $36,000, 6,000 gallons Invoices, $40,000, 2,500 invoices Total costs $396,000 The above activities used by the their three departments are: Lawn Department labor 2,500 hours, gas 1,700 gallons, invoices 1,600. Bush department labor 1,200 hours, gas 800 gallons, invoices 400. Plowing department labor 4,300 hours, gas 3,500 gallons, invoices 500. How much of the labor cost will be assigned to the Bush Department?
Refer to the following table showing the cost application bases used to distribute various costs among the hospital's divisions: Cost Pool: Cost Allocation Base Annual Cost Facilities Square feet of space $395,000 $46,000 Utilities Cubic feet of space General Administration Budgeted number of employees $445,500 Community Outreach Budgeted dollars of patient billings $73,000 Below are the amounts of each cost allocation base associated with each division: square feet cubic feet Number of employees Patient Billings $4,000,000 General Medicine 15,000 135,000 30 8,000 $2,500,000 Surgery Medical support 100,000 20 9,000 90,000 20 $1,500,000 Administration 8,000 75,000 30 $0 Total: 40,000 400,000 100 $8,000,000
None
ictoria Hospital uses a job cost system for all patients who have surgery. In March, the pre-operating room (PRE-OP) and operating room (OR) had budgeted allocation bases of 4 000 nursing hours and 2 000 nursing hours respectively. The budgeted nursing overhead charges forEACH department for the month were $168 000 and $132 000 respectively. The hospital floorfor patients who had undergone surgery, had budgeted overhead costs of $1 200 000 and 15 000nursing hours for the month. For patient Fred Adams, actual hours incurred were eight in thepre-operating room and four in the operating room. He was in the hospital for 4 days (96 hours).Other costs related to Adams were: PRE-OP Costs OR Costs In-room CostsPatient medicine $ 200 $ 500 $2 400Direct nursing time $1 000 $2 000 $3 000 The hospital uses a budgeted overhead rate for applying overheads to patient stays.Required:i. Identify THREE industries suited to using service costing in cost ascertainment.ii. Identify the applicable overhead…
Compton Information Services, Inc., has two service departments: human resources and billing. Compton's operating departmen organized according to the special industry each department serves, are health care, retail, and legal services. The billing depart supports only the three operating departments, but the human resources department supports all operating departments and th billing department. Other relevant information follows. Number of employees Annual cost* Annual revenue Req A1 Department Billing Human Resources 10 $720,000 $1,428,000 $6,000,000 Billing Health Care Retail Complete this question by entering your answers in the tabs below. Req A2 Legal Services Total *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company the number of employees as the base for allocating human resources department costs and department annual revenue as…
The following departmental information is for the four departments at Samoa Industries. Departmental Total Cost Cost Driver Square Feet Number of Employees Janitorial $150,000 Square footage serviced 200 40 Cafeteria 50,000 Number of employees 20,000 12 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Question Content Area 1. Determine the dollar amount of the Janitorial Department costs to be allocated to the (a) Cafeteria, (b) Cutting, and (c) Assembly departments. Department Amount a. Cafeteria Department fill in the blank 1 of 3$ b. Cutting Department fill in the blank 2 of 3$ c. Assembly Department fill in the blank 3 of 3$…
Great Heart Clinic is a medical service institute that provides various services for its patients. The doctors working for the institute are required to fill out a note in the medical system for each patient treated. The system then generates a unique bill for each patient according to the pricing for the specific service or treatment received. Included in each patient’s bill is the applied overhead cost based on direct labor hours. The clinic created the following overhead budget for this year, but the actual overhead was $296,047. Budget Direct labor hours 10,000 Overhead costs: Indirect material $3,500 Indirect labor $45,000 Utilities $6,000 Insurance $78,000 Property taxes $30,000 Total $162,500 During this year, the doctors actually charged a total of 12,190 hours as shown below. Doctors Hours Charged Doctor A 2,000 Doctor B 1,850 Doctor C 1,960 Doctor D 2,100 Doctor E 2,500 Doctor F 1,780 Total 12,190 The overhead variance is deemed…
Technology and Personnel, and two operating departments, Prepress and Printing. Service Department Operating Department Information Technology $ 27,412 Printing $ 530,110 Personnel Prepress Departmental costs $ 27,008 $ 376,940 Computer workstations 28 19 51 38 Employees 27 14 98 30 Information Technology Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total Prepress Department cost after service department allocations is closest to: Multiple Choice $406,961 $413,326 $402,881 $410,563
A hospital analyzed their patient data in the ICU and categorized patients into two types: short-term and long-term. The standard quantities of labor and materials for each type of patient for 2011 are: Short term Long term Direct Material (lbs 9 21 Nursing labor (hrs.) 2.5 5 Standard price paid for direct materials (per lb.): $ 10.00 Standard rate for labor (per hour): $ 16.00 Variable overhead rate for ICU (per hour): $ 30.00 Fixed overhead rate for ICU (per hour): $ 40.00 **VOH and FOH are applied (used) on the basis of direct labor hours Actual operating data for 2011 is as follows: Total short-term patients: 4,000…
Martinez's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $261100, $156800, and $55000, respectively. Information on the hours used are as follows: Acct Admin HR Surgery ER Hours in Acct 20 48 360 220 Hours in Admin 16 8 120 80 Hours in HR 8 4 65 130 What amount of costs would be allocated from the accounting department to the other support departments (admin and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.) O $27522. O $28768. O $0. O $28981.
Departmental information for the four departments at Samoa Industries is provided below. Total Cost Cost Driver Square Feet Number of Employees Janitorial $150,000 Square footage serviced 200 40 Cafeteria 50,000 Number of employees 20,000 12 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Determine the dollar amount of the Janitorial Department costs to be allocated to the: a. Cafeteria Department b. Cutting Department c. Assembly Department %24 %24

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