Please do not give solution in image format thanku Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow.ActivitySuppliesBudgeted Cost Activity Cost Driver$ 2,040,000 Surgical hours (SH)36,000 Number of patients372,000 Square feetPatient servicesBuilding costThe two main surgical units and their actual activity usage follow.Actual Activity UsagePatients300100ServiceGeneral surgeryOrthopedic surgerySurgicalHours2,9007,100SuppliesPatient servicesBuilding cost1. Compute activity rates using activity-based costing.ActivityBudgeted CostSquare Feet7201,680Budgeted ActivityRequired:1. Compute activity rates using activity-based costing.2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for eachsurgery unit.Usage10,0004002,400Budgeted Activity UsageActivity Rate 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgeryunit.General surgerySuppliesPatient servicesBuilding costOrthopedic SurgerySuppliesPatient servicesBuilding cost-----Activity Usage-----Overhead cost per patient-----Activity Usage----------Activity rate----------Activity rate-----Allocated CostAllocated Cost

Under activity based costing method, the cost is allocated to each activity based on its…

Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Supplies Patient services Budgeted Cost Activity Cost Driver $ 2,040,000 Surgical hours (SH) Number of patients Square feet Building cost The two main surgical units and their actual activity usage follow. Service General surgery Orthopedic surgery 36,000 372,000 Activity Actual Activity Usage Supplies Patient services Building cost Surgical Hours 2,900 7,100 Patients 300 100 1. Compute activity rates using activity-based costing. Budgeted Cost Square Feet 720 1,680 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. Budgeted Activity Usage 10,000 400 2,400 Budgeted Activity Usage Activity Rate

Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Supplies Patient services Budgeted Cost Activity Cost Driver $ 2,040,000 Surgical hours (SH) Number of patients Square feet Building cost The two main surgical units and their actual activity usage follow. Service General surgery Orthopedic surgery 36,000 372,000 Activity Actual Activity Usage Supplies Patient services Building cost Surgical Hours 2,900 7,100 Patients 300 100 1. Compute activity rates using activity-based costing. Budgeted Cost Square Feet 720 1,680 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. Budgeted Activity Usage 10,000 400 2,400 Budgeted Activity Usage Activity Rate

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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