The Safe Clinic computes a cost of treating each patient. It allocates costs to departments and then applies departmental overhead costs to individual patients using a different budgeted overhead rate in each department. The following are budgeted for both departments in Safe Clinic for 2010: -                                                                                                                                                            Pharmacy                      Medical Records Department overhead cost                 RM225,000                    RM300,000 No. of prescriptions filled (pharmacy)        80,000                   - No. of patients visited (medical records)    -                                    55,000 In June 2010, David Lim paid 2 visits to the clinic and had 4 prescriptions filled at the pharmacy. 1) Compute the budgeted departmental overhead rates for both departments. 2) Compute the total budgeted overhead cost applied to the patient, David Lim in June 2010. 3) If actual department overhead costs is as budgeted, and actual number of prescriptions filled by the pharmacy and number of patients who visited the clinic during 2010 were 85,000 and 63,000 respectively, compute the over / under absorbed overhead in each department.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The Safe Clinic computes a cost of treating each patient. It allocates costs to departments and then applies departmental overhead costs to individual patients using a different budgeted overhead rate in each department. The following are budgeted for both departments in Safe Clinic for 2010: -

                                                                                               

                                                           Pharmacy                      Medical Records

Department overhead cost                 RM225,000                    RM300,000

No. of prescriptions filled (pharmacy)        80,000                   -

No. of patients visited (medical records)    -                                    55,000

In June 2010, David Lim paid 2 visits to the clinic and had 4 prescriptions filled at the pharmacy.

1) Compute the budgeted departmental overhead rates for both departments.

2) Compute the total budgeted overhead cost applied to the patient, David Lim in June 2010.

3) If actual department overhead costs is as budgeted, and actual number of prescriptions filled by the pharmacy and number of patients who visited the clinic during 2010 were 85,000 and 63,000 respectively, compute the over / under absorbed overhead in each department.

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