The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two operating departments, Surgery and Outpatient. The hospital uses the direct method to allocate service department costs to operating departments. It allocates Cafeteria costs based on the number of employees. Departmental costs before allocation Number of employees Cafeteria $40,000 20,000 $6,316 $8,000 $30,000 $10,000 Housekeeping Surgery $10,000 $140,000 15,000 15,000 Knowledge Check 01 How much Cafeteria cost should be allocated to the Surgery department? Outpatient $360,000 45,000 Total $550,000

The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two operating departments, Surgery and Outpatient. The hospital uses the direct method to allocate service department costs to operating departments. It allocates Cafeteria costs based on the number of employees. Departmental costs before allocation Number of employees Cafeteria $40,000 20,000 $6,316 $8,000 $30,000 $10,000 Housekeeping Surgery $10,000 $140,000 15,000 15,000 Knowledge Check 01 How much Cafeteria cost should be allocated to the Surgery department? Outpatient $360,000 45,000 Total $550,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Support department cost allocation-direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Janitorial Department Cafeteria Department Cost Driver Square footage to be serviced Number of employees Janitorial Department $320,000 Janitorial Department cost allocation Cafeteria Department cost allocation Cafeteria Department $170,000 4,500 3 44 10 Department costs Square feet Number of employees Allocate the support department costs to the production departments using the direct method. Cutting Department $ Cutting Department $1,510,000 $ 700 27 Assembly Department $680,000 6,300 3 Assembly Department
Part (two). The following information relates to the wards in the cardiology department of Good Health Hospital for one accounting period Wards 1 2 3 Number of Beds 12 10 20 Total number of Patients 48 32 108 Total ward staff (excluding consultants) 8 8 12 Ward staff – full-time equivalent 5 4 6 Variable operating costs for period £58,000 £66,000 £98,000 Operating fixed costs £85,000 £67,000 £88,000 General overhead costs £40,000 £40,000 £40,000 General overhead costs are made up of recharges from support services. The total cost of £120,000 is split equally between the three wards. The hospital manager is concerned about the high costs of running the three heart-care wards. She has asked you to investigate their performance. Question Write a report which investigates the costs of operating the three hospital wards. Your report should include appropriate measures of performance for each ward and you…
A hospital analyzed their patient data in the ICU and categorized patients into two types: short-term and long-term. The standard quantities of labor and materials for each type of patient for 2011 are: Short term Long term Direct Material (lbs 9 21 Nursing labor (hrs.) 2.5 5 Standard price paid for direct materials (per lb.): $ 10.00 Standard rate for labor (per hour): $ 16.00 Variable overhead rate for ICU (per hour): $ 30.00 Fixed overhead rate for ICU (per hour): $ 40.00 **VOH and FOH are applied (used) on the basis of direct labor hours Actual operating data for 2011 is as follows: Total short-term patients: 4,000…
The administrator of Break-a-Leg Hospital is aware of the need to keep his costs down because he just negotiated a new capitated arrangement with a large insurance company. Below are selected planned and actual expenses for the previous month. Givens: Budgeteda Actual A Patient days 27,000 26,000 B Pharmacy $120,000 $160,000 C Miscellaneous supplies $66,000 $77,500 D Fixed overhead costs $808,000 $880,000 1. Prepare a flexible expense estimate for variable costs. . Flexible budget estimate. Budgeted Flexible Actual Patient days 27,000 26,000 Cost per patient day $6.89 $9.13 Total cost $186,000 $237,500 2. Compute the volume variance.3. Compute the cost variance. 4. Compute the per unit cost variance. 5. Is the unfavorable variance caused by the volume of patients or the cost…
Activity Supplies Patient services Building cost Budgeted Cost $ 2,865,000 Activity Cost Driver Usage 33,000 368,000 Surgical hours (SH) Number of patients Square feet 15,000 500 3,200 The two main surgical units and their actual activity usage follow. Actual Activity Usage Surgical Service Hours General surgery 3,600 Patients 400 Square Feet Orthopedic surgery 11,400 100 800 2,400 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. 1. Compute activity rates using activity-based costing. Activity Supplies Patient services Building cost Budgeted Cost Budgeted Activity Usage Activity Rate
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Please explain answers.
12.
Falls Creek Community Health Clinic uses the high-low method to analyze cost behavior and has determined that number of patients treated predict the clinic's total treatment costs. Determine the cost function (formula) for total treatment costs. What will the estimated treatment cost be if Falls Creek treats 1,402 patients in a month? Total Number Treatment of Patients Costs January $3,410 February $3,790 $3,574 $3,730 $4,500 1060 1180 March 1030 April 1260 May 1310 $4,294 June 1430 (Round your final answer to two decimal places)
Meals To Go operates a chain of 10 hospitals in the Los Angeles area. Its central food-catering facility, Mealman, prepares and delivers meals to the hospitals. It has the capacity to deliver up to 1,460,000 meals a year. In 2017, based on estimates from each hospital controller, Mealman budgeted for 1,050,000 meals a year. Budgeted fixed costs in 2017 were $1,533,000. Each hospital was charged $6.16 per meal—$4.70 variable costs plus $1.46 allocated budgeted fixed cost. Recently, the hospitals have been complaining about the quality of Mealman’s meals and their rising costs. In mid-2017, Meals To Go’s president announces that all Meals To Go hospitals and support facilities will be run as profit centers. Hospitals will be free to purchase quality-certified services from outside the system. Dean Wright, Mealman’s controller, is preparing the 2018 budget. He hears that three hospitals have decided to use outside suppliers for their meals, which will reduce the 2018 estimated demand to…
Don't give answer in image
Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Budgeted Activity Activity Supplies Patient services Activity Cost Driver Surgical hours (SH) Number of patients Square feet Building cost The two main surgical units and their actual activity usage follow. Actual Activity Usage Budgeted Cost $ 2,310,000 39,000 294,000 Service General surgery Orthopedic surgery Surgical Hours 2,600 8,400 Patients 300 200 Square Feet 720 1,380 Usage 11,000 500 2,100 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.