Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required: 1. Calculate the activity costs for diagnosing and treating patients. Using the activity costs calculated, calculate the unit cost of servicing each type of patient using traditional ABC. Activity rates Diagnosing Sfill in the blank 1 Treating Sfill in the blank 2 Calculate the unit cost of servicing each type of patient using traditional ABC. Unit Cost No Disease $fill in the blank 3 Mild $fill in the blank 4 Severe $fill in the blank 5 DBC, TDABC, and ABC The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two activities use four resources: nursing, medical technicians, cardiologists, and equipment. Detailed interviews have provided the following work distribution matrix shown below. Resources Total Activity Activity Nursing Technicians Cardiologists Equipment Time Diagnosing patients 0.70 0.80 0.40 0.60 12,000 hrs. Treating patients 0.30 0.20 0.60 0.40 8,000 hrs. Total time (hrs.) 4,000 4,000 6,000 6,000 20,000 Cost $80,000 $80,000 $320,000 $320,000 The total time estimated corresponds to practical capacity (interviewers adjusted the total time to about 80 percent of the available time). The equipment time is measured in machine hours. Thus, the total time (at practical capacity) in the system is 20,000 hours. In considering the implementation of a TDABC model, the following unit times and transaction information are also provided: Unit Time Driver Expected Activity Driver Quantity Diagnosing patients 3 hrs No. of patients 4,000 Treating patients 0.8 hr. No. of treatments 10,000 The clinic has identified three types of patients: those with no heart disease, those with mild heart disease, and those with severe heart disease. The following additional data are provided: Average Time Spent Servicing Diagnosing Patients Treating Patients Each Patlent Type (Cycle Time) Patient Type No disease 2,000 0 3 hrs. Mild disease 1,500 Severe disease 500 5,000 5.6 hrs. 5,000 11.0 hrs. Activity cost ? ? Required:

Required: 1. Calculate the activity costs for diagnosing and treating patients. Using the activity costs calculated, calculate the unit cost of servicing each type of patient using traditional ABC. Activity rates Diagnosing Sfill in the blank 1 Treating Sfill in the blank 2 Calculate the unit cost of servicing each type of patient using traditional ABC. Unit Cost No Disease $fill in the blank 3 Mild $fill in the blank 4 Severe $fill in the blank 5 DBC, TDABC, and ABC The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two activities use four resources: nursing, medical technicians, cardiologists, and equipment. Detailed interviews have provided the following work distribution matrix shown below. Resources Total Activity Activity Nursing Technicians Cardiologists Equipment Time Diagnosing patients 0.70 0.80 0.40 0.60 12,000 hrs. Treating patients 0.30 0.20 0.60 0.40 8,000 hrs. Total time (hrs.) 4,000 4,000 6,000 6,000 20,000 Cost $80,000 $80,000 $320,000 $320,000 The total time estimated corresponds to practical capacity (interviewers adjusted the total time to about 80 percent of the available time). The equipment time is measured in machine hours. Thus, the total time (at practical capacity) in the system is 20,000 hours. In considering the implementation of a TDABC model, the following unit times and transaction information are also provided: Unit Time Driver Expected Activity Driver Quantity Diagnosing patients 3 hrs No. of patients 4,000 Treating patients 0.8 hr. No. of treatments 10,000 The clinic has identified three types of patients: those with no heart disease, those with mild heart disease, and those with severe heart disease. The following additional data are provided: Average Time Spent Servicing Diagnosing Patients Treating Patients Each Patlent Type (Cycle Time) Patient Type No disease 2,000 0 3 hrs. Mild disease 1,500 Severe disease 500 5,000 5.6 hrs. 5,000 11.0 hrs. Activity cost ? ? Required:

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 4PA: Pareto chart and cost of quality report for a service company The administrator of Liberty Hospital...
See similar textbooks
icon
Related questions
Question

Don't use ai i will report you answer solve it as soon as possible with proper explanation

Required: 1. Calculate the activity costs for diagnosing and treating patients. Using the activity costs calculated, calculate the unit cost of servicing each type of patient using traditional ABC. Activity rates Diagnosing Sfill in the blank 1 Treating Sfill in the blank 2 Calculate the unit cost of servicing each type of patient using traditional ABC. Unit Cost No Disease $fill in the blank 3 Mild $fill in the blank 4 Severe $fill in the blank 5
Transcribed Image Text:Required: 1. Calculate the activity costs for diagnosing and treating patients. Using the activity costs calculated, calculate the unit cost of servicing each type of patient using traditional ABC. Activity rates Diagnosing Sfill in the blank 1 Treating Sfill in the blank 2 Calculate the unit cost of servicing each type of patient using traditional ABC. Unit Cost No Disease $fill in the blank 3 Mild $fill in the blank 4 Severe $fill in the blank 5
DBC, TDABC, and ABC The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two activities use four resources: nursing, medical technicians, cardiologists, and equipment. Detailed interviews have provided the following work distribution matrix shown below. Resources Total Activity Activity Nursing Technicians Cardiologists Equipment Time Diagnosing patients 0.70 0.80 0.40 0.60 12,000 hrs. Treating patients 0.30 0.20 0.60 0.40 8,000 hrs. Total time (hrs.) 4,000 4,000 6,000 6,000 20,000 Cost $80,000 $80,000 $320,000 $320,000 The total time estimated corresponds to practical capacity (interviewers adjusted the total time to about 80 percent of the available time). The equipment time is measured in machine hours. Thus, the total time (at practical capacity) in the system is 20,000 hours. In considering the implementation of a TDABC model, the following unit times and transaction information are also provided: Unit Time Driver Expected Activity Driver Quantity Diagnosing patients 3 hrs No. of patients 4,000 Treating patients 0.8 hr. No. of treatments 10,000 The clinic has identified three types of patients: those with no heart disease, those with mild heart disease, and those with severe heart disease. The following additional data are provided: Average Time Spent Servicing Diagnosing Patients Treating Patients Each Patlent Type (Cycle Time) Patient Type No disease 2,000 0 3 hrs. Mild disease 1,500 Severe disease 500 5,000 5.6 hrs. 5,000 11.0 hrs. Activity cost ? ? Required:
Transcribed Image Text:DBC, TDABC, and ABC The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two activities use four resources: nursing, medical technicians, cardiologists, and equipment. Detailed interviews have provided the following work distribution matrix shown below. Resources Total Activity Activity Nursing Technicians Cardiologists Equipment Time Diagnosing patients 0.70 0.80 0.40 0.60 12,000 hrs. Treating patients 0.30 0.20 0.60 0.40 8,000 hrs. Total time (hrs.) 4,000 4,000 6,000 6,000 20,000 Cost $80,000 $80,000 $320,000 $320,000 The total time estimated corresponds to practical capacity (interviewers adjusted the total time to about 80 percent of the available time). The equipment time is measured in machine hours. Thus, the total time (at practical capacity) in the system is 20,000 hours. In considering the implementation of a TDABC model, the following unit times and transaction information are also provided: Unit Time Driver Expected Activity Driver Quantity Diagnosing patients 3 hrs No. of patients 4,000 Treating patients 0.8 hr. No. of treatments 10,000 The clinic has identified three types of patients: those with no heart disease, those with mild heart disease, and those with severe heart disease. The following additional data are provided: Average Time Spent Servicing Diagnosing Patients Treating Patients Each Patlent Type (Cycle Time) Patient Type No disease 2,000 0 3 hrs. Mild disease 1,500 Severe disease 500 5,000 5.6 hrs. 5,000 11.0 hrs. Activity cost ? ? Required:
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS