Jordan Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $460,300. The annual cost of operating the computer services department is $371,300. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Number of Patients Workstations Number of Sewell clinic Alphretta clinic Gwinnett clinic 7,200 5,500 10 9 6,900 23 Legal services Computer services 13 Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic.

Jordan Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $460,300. The annual cost of operating the computer services department is $371,300. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Number of Patients Workstations Number of Sewell clinic Alphretta clinic Gwinnett clinic 7,200 5,500 10 9 6,900 23 Legal services Computer services 13 Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. What are the fees for a Basic Exam, Advanced Exam, and a Basic Exam assuming the goal is to cover only variable and fixed direct costs? Assume that the audiology department is allocated $100,000 in total overhead by the clinic, and the department director has allocated $50,000 of this amount to the three services listed above. (To answer this question, assume that the allocation of overhead costs to each service is made on the basis ofnumberof visits.)   2. What are the fees for a Basic Exam, an Advanced Exam, and a Basic Exam assuming the overhead costs must be covered? 7.2 The audiology department at Randall Clinic offers many services to the clinic's patients. The three most common, along with cost and utilization data, are as follows: Copying and distribution of this PDF is prohibited without written permission. For permission, please contact Copyright Clearance Center at www.copyright.com Healthcare Finance Variable Cost Annual Direct Annual Number per Service Fixed Costs of…