Clearwater hospital has never used standard costs. By searching industry literature how ever you havedetermined the following nationwide averages for hospital labsPlates: three plates are required pear lab test these plates cost 2.50 each and are disposed of after thetest is completed.Labor: each smear should require 0.3 to complete and each blood test require 0.6 hours to complete theaverage cost of this lab time is $12 per hourOverhead: overhead cost is based on direct labor hours the average rate of variable overhead is $6 perhour the average rate of fixed overhead is $8 per hour the rates are based a denominator activity levelof 1250 per hour month Required:1- Compute the material price variance for the plates purchased last month and compute materialsquantity variance for plates used last month (indicate the effect of each variance by selecting "F" forfavorable "U" for unfavorable and None for no effect zero variance:Materials Price VarianceMaterial Quantity varianceLabor rate varianceLabor efficiency variance• Variable overhead spending variance• Variable overhead efficiency varianceFixed overhead budget varianceFixed overhead volume variance Marc Goudreau Administrator of clearwater hospital was puzzled by the prior month report everymonth it is anyone guess whether the tab will show a profit or loss perhaps the only answer is toincrease our lab fees again.We cant replied Rhoda Groves the controller there are still a lot of complaint about last increaseparticularly from the insurance company and government health units they are now paying only about80% of what we bill I am beginning to think the problem is on the cost sideTo determine if the clearwater lab costs are in the line with those are other hospital lab Goudreau hasasked you to evaluate the costs for the past month Glove has provided you with the followinginformation• Two basic type of tests are performed in the Lab Smears and blood test during the past month2,700 smears and 900 Blood test were performed in the LabSmall Glass plates are used in both type of tests during the past month the hospital purchased16,000 plates of cost of 38,400 this cost is net of 4% purchase discount a total of 2,000 of theseplates were unused at the end of the month no plates were on hand at the beginning of themonth.During the past month 1,800 hours of labor time were used in performing smear and blood teststhe cost of this labor time was 18,450The Lab's variable overhead cost last month totaled 11,700Fixed overhead cost last month totaled 10,400

The budget variances are essentially measurable metrics of variances in actuals as compared to…

Clearwater hospital has never used standard costs. By searching industry literature how ever you have determined the following nationwide averages for hospital labs Plates: three plates are required pear lab test these plates cost 2.50 each and are disposed of after the test is completed. Labor: each smear should require 0.3 to complete and each blood test require 0.6 hours to complete the average cost of this lab time is $12 per hour Overhead: overhead cost is based on direct labor hours the average rate of variable overhead is $6 per hour the average rate of fixed overhead is $8 per hour the rates are based a denominator activity level of 1250 per hour month Required: 1- Compute the material price variance for the plates purchased last month and compute materials quantity variance for plates used last month (indicate the effect of each variance by selecting "F" for favorable "U" for unfavorable and None for no effect zero variance: Materials Price Variance • Material Quantity variance • Labor rate variance • Labor efficiency variance • Variable overhead spending variance • Variable overhead efficiency variance • Fixed overhead budget variance • Fixed overhead volume variance

Clearwater hospital has never used standard costs. By searching industry literature how ever you have determined the following nationwide averages for hospital labs Plates: three plates are required pear lab test these plates cost 2.50 each and are disposed of after the test is completed. Labor: each smear should require 0.3 to complete and each blood test require 0.6 hours to complete the average cost of this lab time is $12 per hour Overhead: overhead cost is based on direct labor hours the average rate of variable overhead is $6 per hour the average rate of fixed overhead is $8 per hour the rates are based a denominator activity level of 1250 per hour month Required: 1- Compute the material price variance for the plates purchased last month and compute materials quantity variance for plates used last month (indicate the effect of each variance by selecting "F" for favorable "U" for unfavorable and None for no effect zero variance: Materials Price Variance • Material Quantity variance • Labor rate variance • Labor efficiency variance • Variable overhead spending variance • Variable overhead efficiency variance • Fixed overhead budget variance • Fixed overhead volume variance

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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Selected financial data for the Micco Community Health Clinic follows for a volume of 120,000 patients. Total Fixed Costs $304,144 Total costs (fixed and variable) $464,620 Calculate the variable cost per patient. (input your number without dollar signs or commas. Use 2 decimal places.)
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Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total selling and administrative expenses Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Total Activity 4,700 deliveries 3,700 orders Total Cost $ 361,900 266,400 191,540 518,000 370,000 line items $ 1,337,840 12,200 orders Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity Measure Number of deliveries Number of manual orders Number of electronic…
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Customer deliveries Total Cost $ 313,900 224,400 180,540 Manual order processing Electronic order processing Line item picking 379,500 Total selling and administrative expenses $ 1,098,340 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Required 1 City General 20 0 20 120 Required 2 Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items…
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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. Question: Calculate the capacity cost rate per minute for each employee position in the hospital. Describe each component used for calculation and why.
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S Zachary Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $316,050. The annual cost of operating the computer services department is $451,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Number of Patients 6,900 5,300 7,100 Number of Workstations Sewell clinic Alphretta clinic Gwinnett clinic Legal services Computer services Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services…
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