Can you please check my answer **Allocating Indirect Expenses in a Surgical Clinic**David Jones, the new administrator for a surgical clinic, aimed to determine a fair method of allocating indirect expenses. Previously, his staff expressed dissatisfaction with the revenue-based allocation model, deeming it unfair. In response, David decided on a new approach:- Utilities would be allocated based on square footage.- Administration costs would be distributed according to direct expenses.- Laboratory expenses would be divided based on the number of lab tests.The following chart provides relevant data for each department:| Department | Square Footage | Direct Expenses | Lab Tests ||-----------------|----------------|-----------------|-----------|| Utilities | | $200,000 | || Administration | 2,000 | $500,000 | || Laboratory | 2,000 | $625,000 | || Day-op suite | 3,000 | $1,400,000 | 4,000 || Cystoscopy | 1,500 | $300,000 | 500 || Endoscopy | 1,500 | $600,000 | 500 || **Total** | **10,000** | **$3,375,000** | **5,000** |**Question:** What are the day-op suite's total expenses?The calculated total expense for the day-op suite is **$2,375,551**.

Given data, SQUARE FOOTAGE SQAURE FOOTAGE LAB TESTS UTILITIES 200,000 ADMINISTRATION 2,000 500,000 LABORATORY 2,000 625,000 DAY-OP SUITE 3,000 1,400,000 4,000 CYSTOSCOPY 1,500 300,000 500 ENDOSCOPY 1,500 600,000 500 TOTAL 10,000 3,375,000 5,000 The total utilities cost = $200,000, Total square footage = 10,000 Utilities per square foot = $200,000/10,000 = $20 The day-op suite total expenses - = Direct expenses + Utility cost allocated to day-op suite = $1,400,000 + ($20 * 4,000 sq foot) = $1,480,000

Business

Operations Management

David Jones, the new administrator for a surgical clinic, was trying to determine now to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below. Square Footage Direct Lab Tests Expenses $200,000 500,000 625,000 1,400,000 300,000 600,000 $3,375,000 Utilities Administration 2,000 Laboratory Day-op suite Cystoscopy Endoscopy Total 2,000 3,000 1,500 1,500 10,000 4,000 500 500 5,000

David Jones, the new administrator for a surgical clinic, was trying to determine now to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below. Square Footage Direct Lab Tests Expenses $200,000 500,000 625,000 1,400,000 300,000 600,000 $3,375,000 Utilities Administration 2,000 Laboratory Day-op suite Cystoscopy Endoscopy Total 2,000 3,000 1,500 1,500 10,000 4,000 500 500 5,000

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Service efforts and accomplishments reporting is now required by the GASB for governme O True O False
Assumptions about email? What path does information follow as it travels from one place to another? Write down everything that you have picked up. As a first question, why are there any differences? Think about the range of models' levels of granularity (or lack thereof).
In the marketplace today, the demand for high-level salespeople
please answer in 4 sentences
Please provide an explanation as to why it would be beneficial for a company to install information systems.
A social media plan should be monitored after it has been implemented because social media campaigns can be fluid. Question 5 options: True False
Try to give geniuene answer please 1278. Discuss the role of document flow in facilitating construction project equipment commissioning verification reviews.
Service Characteristics does not include Group of answer choices Intangibility Variability Perishability Separability
Describe the role of AI and chatbots in modern CRM systems. How do these technologies improve customer service and automate routine tasks?
Alert dont submit AI generated answer. Using supporting examples from your prescribed and online materials, discuss some advantages of business-to-business (B2B) e-commerce.
When you last contacted a company with a product or service request, which contact optons did you have? Which option did you choose. and why?
completing an MBA could serve as a: screening device signaling device principle-agent model private information to be used only in specific situations