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
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SHOW ALL WORK FOR ALL HIGHLIGHTED, AND ROUND ALL VALUES TO 5 DECIMALS .

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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
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
Transcribed Image Text: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 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
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