Variable Medical Services Department costs are budgeted at $56 per employee. Fixed Medical Services Department costs are budgeted at $697,500 per year. Actual Medical Services Department costs for the most recent year were $105,400 for variable costs and $703,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Actual number of employees for the most recent year Long-run average number of employees Required 1 Required 2 Cutting 617 517 1,020 Medical services department charges Cutting Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Complete this question by entering your answers in the tabs below. Milling 283 383 680 < Required 1 Assembly 905 Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. Milling 805 1,700 Assembly Required 2 >

Variable Medical Services Department costs are budgeted at $56 per employee. Fixed Medical Services Department costs are budgeted at $697,500 per year. Actual Medical Services Department costs for the most recent year were $105,400 for variable costs and $703,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Actual number of employees for the most recent year Long-run average number of employees Required 1 Required 2 Cutting 617 517 1,020 Medical services department charges Cutting Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Complete this question by entering your answers in the tabs below. Milling 283 383 680 < Required 1 Assembly 905 Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. Milling 805 1,700 Assembly Required 2 >

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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Question Content Area At the beginning of the period, the Cutting Department budgeted direct labor of $131,000, direct materials of $151,000 and fixed factory overhead of $11,400 for 7,600 hours of production. The department actually completed 11,900 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations. a. $452,953 b. $299,850 c. $293,400 d. $459,403
Professional Labor Cost Budget Day & Spieth, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending March 31, 20Y6: Billable Hours Audit Department: Staff 50,000 Partners 10,000 Tax Department: Staff 75,000 Partners 16,000 Small Business Accounting Department: Staff 20,000 Partners 4,000 Assume that the average compensation per hour for staff is $36 and for partners is $300. Prepare a professional labor cost budget for Day & Spieth, CPAs, for the year ending March 31, 20Y6. Enter all amounts as positive numbers. DAY & SPIETH, CPAs Professional Labor Cost Budget For the Year Ending March 31, 20Y6 Staff Partners Audit Department hours fill in the blank 1 fill in the blank 2 Tax Department hours fill in the blank 3 fill in the blank 4 Small Business…
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Benson Memorial hospital cost formula for its wages and salaries is $2,030 per month plus $409 per birth. For the month of December, the hospital planned for activity of 112 births, but the actual level of activity was 114 births. The actual wages and salaries for the month was $50,800. The wages and salaries in the planning budget for December would be closest to: ○ $50,800 $47,838 $49,707 $48,656
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Subject: accounting
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…
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