Grand Haven is a senior living community that offers a full range of services including independent living, assisted living, and skilled nursing care. The assisted living division provides residential space, meals, and medical services (MS) to its residents. The current costing system adds the cost of all of these services (space, meals, and MS) and divides by total resident days to get a cost per resident day for each month. Recognizing that MS tends to vary significantly among the residents, Grand Haven's accountant recommended that an ABC system be designed to calculate more accurately the cost of MS provided to residents. She decided that residents should be classified into four categories (A, B, C, D) based on the level of services received, with group A representing the lowest level of service and D representing the highest level of service. Two cost drivers being considered for measuring MS costs are number of assistance calls and number of assistant contacts. A contact is registered each time an assistance professional provides medical services or aid to a resident. The accountant has gathered the following data for the most recent annual period: Resident Classification Annual Resident Days Annual Assistance Hours Number of Assistance Contacts 8,760 15.000 60.000 6.570 20.000 52.000 4,380 22,500 52,000 2190 32500 52.000 21,900 90,000 216.000 Other data: Total cost of medical services for the period $2.000.000 Total cost of meals and residential space $1,142.500 a. Determine the ABC cost of a resident day for each category of residents using assistance hours as the cost driver. Round answer below to the nearest dollar. Medical services cost per assistance hour S NOTE: Use yourrounded answer above to compute.answers below, Round final answers to the nearest dollar. Per Day Costs Medical Services Meals and Residential Total Class AS Class B Class C Class D b. Determine the ABC cost of a resident day for each category of residents using assistance contacts as the cost driver. Round answer below to the nearest dollar. Medical services cost per assistance contacts $ 0 NOTE: Use your rounded answer above to compute answers below. Round final answers to the nearest dollar.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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How do I calculate Activity Based Costing Overhead Rates? 

A
Number of Assistance Contacts
8,760
15,000
60,000
6,570
20,000
52,000
4,380
22,500
52,000
2.190
32,500
52,000
21,900
90,000
216,000
Other data:
Total cost of medical services for the period $2,000,000
Total cost of meals and residential space
$1,142,500
a. Determine the ABC cost of a resident day for each category of residents using assistance hours as the cost driver.
Round answer below to the nearest dollar.
Medical services cost per assistance hour $ 0
NOTE: Use your rounded answer above to compute answers below. Round final answers to the nearest dollar.
Per Day Costs
Medical Services Meals and Residential
Total
Class A $
Class B
Class C
Class D
b. Determine the ABC cost of a resident day for each category of residents using assistance contacts as the cost driver.
Round answer below to the nearest dollar.
Medical services cost per assistance contacts $ 0
NOTE: Use your rounded answer above to compute answers below. Round final answers to the nearest dollar.
Per Day Costs
Medical Services Meals and Residential
Total
Class A $
Class B
Class C
0.
Class D
0.
Transcribed Image Text:A Number of Assistance Contacts 8,760 15,000 60,000 6,570 20,000 52,000 4,380 22,500 52,000 2.190 32,500 52,000 21,900 90,000 216,000 Other data: Total cost of medical services for the period $2,000,000 Total cost of meals and residential space $1,142,500 a. Determine the ABC cost of a resident day for each category of residents using assistance hours as the cost driver. Round answer below to the nearest dollar. Medical services cost per assistance hour $ 0 NOTE: Use your rounded answer above to compute answers below. Round final answers to the nearest dollar. Per Day Costs Medical Services Meals and Residential Total Class A $ Class B Class C Class D b. Determine the ABC cost of a resident day for each category of residents using assistance contacts as the cost driver. Round answer below to the nearest dollar. Medical services cost per assistance contacts $ 0 NOTE: Use your rounded answer above to compute answers below. Round final answers to the nearest dollar. Per Day Costs Medical Services Meals and Residential Total Class A $ Class B Class C 0. Class D 0.
ABC-A Service Application
Grand Haven is a senior living community that offers a full range of services including independent living, assisted living, and skilled nursing care. The assisted living division provides residential space, meals, and medical services (MS) to its residents. The current
costing system adds the cost of all of these services (space, meals, and MS) and divides by total resident days to get a cost per resident day for each month. Recognizing that MS tends to vary significantly among the residents, Grand Haven's accountant
recommended that an ABC system be designed to calculate more accurately the cost of MS provided to residents. She decided that residents should be classified into four categories (A, B, C, D) based on the level of services received, with group A representing the
lowest level of service and D representing the highest level of service. Two cost drivers being considered for measuring MS costs are number of assistance calls and number of assistant contacts. A contact is registered each time an assistance professional provides
medical services or aid to a resident. The accountant has gathered the following data for the most recent annual period:
O Support Dashboard 9 Bradley Hayes
Resident Classification Annual Resident Days Annual Assistance Hours Number of Assistance Contacts
8,760
15,000
60,000
6,570
20,000
52,000
4,380
22,500
52,000
D.
2.190
32,500
52,000
21,900
90,000
216,000
Other data:
Total cost of medical services for the period $2,000,000
Total cost of meals and residential space
$1,142,500
a. Determine the ABC cost of a resident day for each category of residents using assistance hours as the cost driver.
Round answer below to the nearest dollar.
Medical services cost per assistance hour $ 0
NOTE: Use your rounded answer above to compute answers below. Round final answers to the nearest dollar.
Per Day Costs
Medical Services Meals and Residential
Total
Class A$
Class B
0.
0.
Class C
0.
0.
Class D
0.
0.
b. Determine the ABC cost of a resident day for each category of residents using assistance contacts as the cost driver.
Round answer below to the nearest dollar.
Medical services cost per assistance contacts $ 0
NOTE: Use your rounded answer above to compute answers below. Round final answers to the nearest dollar.
Per Day Costs
vicor Moals and Residential
Total
CO
Transcribed Image Text:ABC-A Service Application Grand Haven is a senior living community that offers a full range of services including independent living, assisted living, and skilled nursing care. The assisted living division provides residential space, meals, and medical services (MS) to its residents. The current costing system adds the cost of all of these services (space, meals, and MS) and divides by total resident days to get a cost per resident day for each month. Recognizing that MS tends to vary significantly among the residents, Grand Haven's accountant recommended that an ABC system be designed to calculate more accurately the cost of MS provided to residents. She decided that residents should be classified into four categories (A, B, C, D) based on the level of services received, with group A representing the lowest level of service and D representing the highest level of service. Two cost drivers being considered for measuring MS costs are number of assistance calls and number of assistant contacts. A contact is registered each time an assistance professional provides medical services or aid to a resident. The accountant has gathered the following data for the most recent annual period: O Support Dashboard 9 Bradley Hayes Resident Classification Annual Resident Days Annual Assistance Hours Number of Assistance Contacts 8,760 15,000 60,000 6,570 20,000 52,000 4,380 22,500 52,000 D. 2.190 32,500 52,000 21,900 90,000 216,000 Other data: Total cost of medical services for the period $2,000,000 Total cost of meals and residential space $1,142,500 a. Determine the ABC cost of a resident day for each category of residents using assistance hours as the cost driver. Round answer below to the nearest dollar. Medical services cost per assistance hour $ 0 NOTE: Use your rounded answer above to compute answers below. Round final answers to the nearest dollar. Per Day Costs Medical Services Meals and Residential Total Class A$ Class B 0. 0. Class C 0. 0. Class D 0. 0. b. Determine the ABC cost of a resident day for each category of residents using assistance contacts as the cost driver. Round answer below to the nearest dollar. Medical services cost per assistance contacts $ 0 NOTE: Use your rounded answer above to compute answers below. Round final answers to the nearest dollar. Per Day Costs vicor Moals and Residential Total CO
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