Owl-Eye Radiologists (OR) does various types of diagnostic imaging. Radiologists perform tests using sophisticated equipment. OR's management wants to compute the costs of performing tests for two different types of patients: those who are hospitalized (including those in emergency rooms) and those who are not hospitalized but are referred by physicians. The data for June for the two categories of patients follow. Units (i.e., procedures) produced Equipment-hours used. Direct labor-hours Direct labor costs. Overhead costs Hospital Other Patients PatientsTotal 640 Account 240 480 $ 38,400 860 120 180 $10,800 Utilities Supplies Indirect labor and supervision Equipment depreciation and maintenance. Miscellaneous The accountant first assigns overhead costs to two pools: overhead related to equipment-hours and overhead related to labor-hours. The analysis of overhead accounts by the cost accountant follows. Amount $ Related to 1,500 360 660 $49,200 $49,560 3,360 Equipment- hours 4,800 12,600 Labor-hours 20,400 Labor-hours. Equipment- 8,4005 hours Equipment- hours Required: a. Compute the predetermined overhead rates assuming that Owl-Eye Radiologists uses equipment-hours to allocate equipment-related overhead costs and labor-hours to allocate labor- related overhead costs. b. Compute the total costs of production and the cost per unit for each of the two types of patients undergoing tests in June
Owl-Eye Radiologists (OR) does various types of diagnostic imaging. Radiologists perform tests using sophisticated equipment. OR's management wants to compute the costs of performing tests for two different types of patients: those who are hospitalized (including those in emergency rooms) and those who are not hospitalized but are referred by physicians. The data for June for the two categories of patients follow. Units (i.e., procedures) produced Equipment-hours used. Direct labor-hours Direct labor costs. Overhead costs Hospital Other Patients PatientsTotal 640 Account 240 480 $ 38,400 860 120 180 $10,800 Utilities Supplies Indirect labor and supervision Equipment depreciation and maintenance. Miscellaneous The accountant first assigns overhead costs to two pools: overhead related to equipment-hours and overhead related to labor-hours. The analysis of overhead accounts by the cost accountant follows. Amount $ Related to 1,500 360 660 $49,200 $49,560 3,360 Equipment- hours 4,800 12,600 Labor-hours 20,400 Labor-hours. Equipment- 8,4005 hours Equipment- hours Required: a. Compute the predetermined overhead rates assuming that Owl-Eye Radiologists uses equipment-hours to allocate equipment-related overhead costs and labor-hours to allocate labor- related overhead costs. b. Compute the total costs of production and the cost per unit for each of the two types of patients undergoing tests in June
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please do not give solution in image format and fast answering please and explain proper steps by Step.?
Transcribed Image Text:Owl-Eye Radiologists (OR) does various types of
diagnostic imaging. Radiologists perform tests
using sophisticated equipment. OR's
management wants to compute the costs of
performing tests for two different types of
patients: those who are hospitalized (including
those in emergency rooms) and those who are
not hospitalized but are referred by physicians.
The data for June for the two categories of
patients follow.
Units (i.e., procedures)
produced
Equipment-hours used.
Direct labor-hours.
Direct labor costs.
Overhead costs
Hospital Other
PatientsPatientsTotal
Account
640
240
480
$ 38,400
Utilities.
Supplies
Indirect labor and supervision
Equipment depreciation and maintenance
Miscellaneous
860
120
180
$10,800
The accountant first assigns overhead costs to
two pools: overhead related to equipment-hours
and overhead related to labor-hours. The analysis
of overhead accounts by the cost accountant
follows.
Amount
$
1,500
360
660
Related
to
$49,200
$49,560
4,800 hourent-
12,600 Labor-hours
20,400 Labor-hours
8,400 Equipment-
hours
Equipment-
3,360
hours
Required:
a. Compute the predetermined overhead rates.
assuming that Owl-Eye Radiologists uses
equipment-hours to allocate equipment-related
overhead costs and labor-hours to allocate labor-
related overhead costs.
b. Compute the total costs of production and the
cost per unit for each of the two types of patients
undergoing tests in June
Transcribed Image Text:es
b. Compute the total costs of production and the cost per unit for each of the two types of patients undergoing tests in June.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute the total costs of production and the cost per unit for each of the two types of patients undergoing tests in June.
(Round "Cost per unit" to 2 decimal places.)
Hospital Patients Other Patients
Total cost
Cost per unit
equired A
Required >
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