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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:

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 2TP: Josh OShea is the manager of the Cardiovascular/Respiratory Laboratory. This department is...
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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:
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