Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines are served three operating departments, which are necessary for providing the two types of products: claims processing, administration, and sales. These three operating departments are supported by two departments: Information technology and operations. The support provided by information technology and operations to the other departments is shown below. Support Departments Information technology Operations Operating Departments Information Technology Operations 20% Claims Processing 20% Administration Sales 40% 20% 10% 10 30 The total costs incurred in the five departments are: Information technology Operations Claims processing Administration Sales $ 578,000 1,780,000 290,000 630,000 650,000 Total costs Required: $ 3,928,000 Determine the total costs in each of the three operating departments after departmental allocations, using (a) the direct method. (b

Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines are served three operating departments, which are necessary for providing the two types of products: claims processing, administration, and sales. These three operating departments are supported by two departments: Information technology and operations. The support provided by information technology and operations to the other departments is shown below. Support Departments Information technology Operations Operating Departments Information Technology Operations 20% Claims Processing 20% Administration Sales 40% 20% 10% 10 30 The total costs incurred in the five departments are: Information technology Operations Claims processing Administration Sales $ 578,000 1,780,000 290,000 630,000 650,000 Total costs Required: $ 3,928,000 Determine the total costs in each of the three operating departments after departmental allocations, using (a) the direct method. (b

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter3: Data Visualization

Section: Chapter Questions

Problem 23P: Aurora Radiological Services is a health care clinic that provides radiological imaging services...

See similar textbooks

Similar questions

Describe the staffing competencies needed for hiring team members in the back-end revenue cycle of a healthcare organization
For each of the following support departments, identify a cost driver that could be used for allocating the support department costs to the profit center: a. Legal b. Duplication services c. Electronic data processing d. Central purchasing e. Telecommunications f. Accounts receivable
Explain why maintaining their medical-services provider network is treated as a product-sustaining-level activity by Blue Cross Blue Shield.
For each office or business segment, indicate which type of Responsibility Center it is: a. A retail location, such as the Apple Store b. A manufacturing division that manages its own facilities and production equipment c. Call center for a warranty claims processing d. Consulting department of an accounting firm e. Quality control department for a golf ball manufacturer PreviousNext
Describe the unique aspects of accounting for health care entities.
Explain the following entities: (about ten lines each). Use any Internet resources, and please give reference to those resources. (a) HMO (Health Maintenance Organization. (b) PPO (Preferred Provider Organization. (C) CMS (Centers for Medicare and Medicaid Services. (d) PPS (Prospective Payment System. (e) DRG (Diagnosis Related Groups.
Identify an activity base that could be used to charge user divisions for services for each actitivity. Payroll Accounts Payable Accounts Receivable Database Administration-report preparation
1
There are three types oforganizations namelymanufacturing, services and tradingsectors, choose any one organizationfrom each sector of your choice andname 5 Assets, Liabilities,Expenses and revenue from them.
Distinguish among the three methods of allocating the costs of support departments to operating departments. The ignores any services rendered by one support department to another; it allocates each support department's costs directly to the operating departments. The a sequential manner that partially recognizes the mutual services provided among all support departments. allocates support-department costs to other support departments and to operating departments in The allocates support-department costs to operating departments by fully recognizing the mutual services provided among all support departments.
Identify some possible causal factors for the following support departments: a. Cafeteria b. Custodial services c. Laundry d. Receiving, shipping, and stores e. Maintenance f. Personnel g. Accounting h. Power i. Building and grounds
Which of the following activities would use number of customer orders as an activity base? A. Order shipping B. Invoicing & collecting C. Customer return processing D. Both A & B