Colorado Family Practice (CFP) provides multiple services to its patient population. CFP provides two services: adult care and pediatric care. Additional information is provided below. Annual volume (visits) Annual direct costs Annual indirect costs Annual charges O 380,500 O $495,000 Adult Care 7,000 $1,050,000 O $113,400 2,750,000 How much of the annual indirect costs should be allocated to Adult Care using the cost-to-charge ratio method? Pediatric Care 4,000 $320,000 O Can't tell from the information provided $750,000 Total 11,000 $1,370,000 $630,000 $3,500,000

Colorado Family Practice (CFP) provides multiple services to its patient population. CFP provides two services: adult care and pediatric care. Additional information is provided below. Annual volume (visits) Annual direct costs Annual indirect costs Annual charges O 380,500 O $495,000 Adult Care 7,000 $1,050,000 O $113,400 2,750,000 How much of the annual indirect costs should be allocated to Adult Care using the cost-to-charge ratio method? Pediatric Care 4,000 $320,000 O Can't tell from the information provided $750,000 Total 11,000 $1,370,000 $630,000 $3,500,000

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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