What would be the total expense for the Routine Care department (this is the addition of direct department expenses and allocated indirect costs). Revenues Department Facilities (support dept) Accounting-Billing (support dept) Total for Support Departments Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Departments Grant Total Select one or more: □ a. $11,448,000 Ob. $3,750,000 c. $1,448,000 $912,750 O d. $ $ Expenses S $ S 30,000,000 $ 25,000,000 $ $ 20,000,000 $ S 75,000,000 S $ 75,000,000 S 1,500,000 2,000,000 3,500,000 10,000,000 8,000,000 6,000,000 24,000,000 27,500,000 Space (square Feet) Number of Procedur 10,000 20,000 30,000 150,000 100,000 75,000 325,000 355,000 500,000 450,000 375,000 1,325,000 1,325,000

What would be the total expense for the Routine Care department (this is the addition of direct department expenses and allocated indirect costs). Revenues Department Facilities (support dept) Accounting-Billing (support dept) Total for Support Departments Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Departments Grant Total Select one or more: □ a. $11,448,000 Ob. $3,750,000 c. $1,448,000 $912,750 O d. $ $ Expenses S $ S 30,000,000 $ 25,000,000 $ $ 20,000,000 $ S 75,000,000 S $ 75,000,000 S 1,500,000 2,000,000 3,500,000 10,000,000 8,000,000 6,000,000 24,000,000 27,500,000 Space (square Feet) Number of Procedur 10,000 20,000 30,000 150,000 100,000 75,000 325,000 355,000 500,000 450,000 375,000 1,325,000 1,325,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

What would be the total expense for the Routine Care department (this is the addition of
direct department expenses and allocated indirect costs).
Revenues
Department
Facilities (support dept)
Accounting - Billing (support dept)
Total for Support Departments
Routine Care (patient services)
Intensive Care (patient services)
Diagnostic Services (patient services)
Total for Patient Service Departments
Grant Total
Select one or more:
□ a.
$11,448,000
O b.
$3,750,000
c. $1,448,000
d.
$912,750
$
$
$
S
$
Expenses
$ 1,500,000
$
2,000,000
S
3,500,000
30,000,000 $
25,000,000 $
20,000,000 $
75,000,000 S
75,000,000 $
10,000,000
8,000,000
6,000,000
24,000,000
27,500,000
Space (square Feet) Number of Procedure
10,000
20,000
30,000
150,000
100,000
75,000
325,000
355,000
500,000
450,000
375,000
1,325,000
1,325,000

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