Your organization has opened a walk-in clinic. A list of expenses has been given to the new staff accountant, Marvin, from the walk-in clinic manager and Marvin needs your help. Marvin wants you to help him identify whether costs shown in the table below are direct or indirect. Additionally, Marvin would like you to describe:1. The monetary total of direct and indirect costs. ItemCostDirectIndirectIT Salaries and Benefits$1,500 RN Salaries and Benefits$9,600 Utilities and Telephone$3,000 Carpets$1,000 Magazine Subscriptions$ 50 Vehicle Expense$1,775 Exam Table$5,500 End Tables$ 500 Coffee Tables$1,400 Facility Insurance$ 650 Staff Uniforms$1,200 Cleaning Supplies$ 200 Desk Lamps$ 150 Front Desk Flowers$ 300 Bottled Water$ 250 Facility Maintenance$ 700 Landscaping Expense$1,800 Facility Cleaning$1,500

Introduction Direct costs: Direct costs are those costs which are easily traceable with the…

Answered: Your organization has opened a walk-in…

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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Your organization has opened a walk-in clinic. A list of expenses has been given to the new staff accountant, Marvin, from the walk-in clinic manager and Marvin needs your help. Marvin wants you to help him identify whether costs shown in the table below are direct or indirect. Additionally, Marvin would like you to describe:

1. The monetary total of direct and indirect costs.

Item	Cost	Direct	Indirect
IT Salaries and Benefits	$1,500
RN Salaries and Benefits	$9,600
Utilities and Telephone	$3,000
Carpets	$1,000
Magazine Subscriptions	$ 50
Vehicle Expense	$1,775
Exam Table	$5,500
End Tables	$ 500
Coffee Tables	$1,400
Facility Insurance	$ 650
Staff Uniforms	$1,200
Cleaning Supplies	$ 200
Desk Lamps	$ 150
Front Desk Flowers	$ 300
Bottled Water	$ 250
Facility Maintenance	$ 700
Landscaping Expense	$1,800
Facility Cleaning	$1,500

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