Crosstown Health Center runs two programs: drug addict rehabilitation and after- care (counseling and support of patients after release from a mental hospital). The center's budget for 2017 follows. Professional salaries: 4 physicians x $150,000 12 psychologists x $75,000 16 nurses x $30,000 Medical supplies $600,000 900,000 480,000 $1,980,000 242,000 Rent and clinic maintenance 138,600 Administrative costs to manage patient charts, food, laundry Laboratory services Total 484,000 92,400 $2,937,000 Kim Yu, the director of the center, is keen on determining the cost of each program. Yu compiles the follow- ing data describing employee allocations to individual programs: Total Employees Drug Aftercare Physicians Psychologists 12 Nurses 10 16 Yu has recently become aware of activity-based costing as a method to refine costing systems. She asks her accountant, Gus Gates, how she should apply this technique. Gates obtains the following budgeted information for 2017: Drug Total Aftercare Square feet of space occupied by each program Patient-years of service Number of laboratory tests 9,000 12,000 21,000 50 60 110 700 1,400 2,100

Crosstown Health Center runs two programs: drug addict rehabilitation and after- care (counseling and support of patients after release from a mental hospital). The center's budget for 2017 follows. Professional salaries: 4 physicians x $150,000 12 psychologists x $75,000 16 nurses x $30,000 Medical supplies $600,000 900,000 480,000 $1,980,000 242,000 Rent and clinic maintenance 138,600 Administrative costs to manage patient charts, food, laundry Laboratory services Total 484,000 92,400 $2,937,000 Kim Yu, the director of the center, is keen on determining the cost of each program. Yu compiles the follow- ing data describing employee allocations to individual programs: Total Employees Drug Aftercare Physicians Psychologists 12 Nurses 10 16 Yu has recently become aware of activity-based costing as a method to refine costing systems. She asks her accountant, Gus Gates, how she should apply this technique. Gates obtains the following budgeted information for 2017: Drug Total Aftercare Square feet of space occupied by each program Patient-years of service Number of laboratory tests 9,000 12,000 21,000 50 60 110 700 1,400 2,100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What have been the consequences of BC/BS conversion from not-for-profit to for-profit status in terms of market share, patient access, quality of care, and cost of care?
Compare and contrast a between-groups design and a within-subjects design. What information about variables, levels, and design should you keep in mind in order to choose an appropriate statistic?
What features of a non-profit homeless shelter imply that a hybrid cost method should be utilized to allocate resources?
My follow up question is: Which method is better (plantwide rate method or department rate method)?
What is the difference between a contribution- and a benefit-orientedretirement plan?
1a. How will DAS transform the mental health industry? b) What are the anticipated obstacles and benefits from the integration of DAS?
What mechanism is used to provide a systematic assessment of an organization's performance in implementing socially responsible programs, often based on predefined goals? Question 34 options: sustainability program code of ethics financial audit social audit
How can we compare the alternatives with unequal service lives?
Discus the relationship between a good energy accounting system and an effective energy management program.
Calculate the incremental cost and incremental benefit of the treatment alternatives. What is the ICER?
What is a sunk cost, and if included in a project how should they be treated?
4) You have received grant funding from the state of California for a community benefit. You are trying to prioritize the best plan and need to determine the benefits that are being created and measure the cost of the program against the benefits. The state will determine what the funding will be used for, so you will need to provide them your analysis. Mental Health Substance Abuse Tuberculosis Control Sexually Transmitted Diseases HIV Testing/Diagnosis Diabetes Clinic Well-Baby Clinics Violence Prevention ● 2 3 4 Cost/Grant 1 $1,000,000 $75,000 $80,000 $100,000 $150,000 $1,000,000 $100,000 $65,000 $75,000 $200,000 $350,000 $500,000 $150,000 $60,000 $70,000 $80,000 $300,000 $60,000 $80,000 $100,000 $200,000 $300,000 $75,000 $80,000 $200,000 $900,000 $30,000 $450,000 $600,000 $250,000 $50,000 $100,000 $150,000 $350,000 $75,000 $100,000 Mental Health Substance Abuse Tuberculosis Control Sexually Transmitted Diseases HIV Testing/Diagnosis Diabetes Clinic Benefits/Year Well Baby Clinics…