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Assignment week 4
Financial Healthcare
November 19, 2023
2
Chapter 6: Problem 6.1 a)
What is the value of the cost pool? The cost pool is: $100 000.00 b)
The allocation rate using the patient service revenue as the cost driver: Allocation rate = 100000/5000000 => Allocation rate = $0.02 per patient service The allocation rate using hours of housekeeping services as the cost driver: Allocation rate = 100000/5000 => Allocation rate = $20.00 Per housekeeping hour. Chapter 6: Problem 6.7 a)
The appropriate allocation rates are: General administration allocation rate= General administration cost/Patient service revenue => General administration allocation rate = 4000000/63000000 => General administration allocation rate = $0.0635 per dollar of patient revenue. Maintenance expense allocation rate = Maintenance expense cost/space utilization => Maintenance expense allocation rate = 5000000/805000 => Maintenance expense allocation rate= $6.2111 Per Square feet Employee benefits administration allocation rate = employee benefits cost/number of full time – time employees => Employee benefits administration allocation rate= 4000000/1590 => Employee benefits administration allocation rate= $2515.72 Per full-time employee
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Problem 11-22A (Algo) Cost behavior and averaging LO 11-1, 11-2
Janice Huffman has decided to start Jordan Cleaning, a residential housecleaning service company. She is able to rent cleaning
equipment at a cost of $750 per month. Labor costs are expected to be $70 per house cleaned and supplies are expected to cost $7
per house.
Required
a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned,
assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of equipment a fixed or a variable cost?
b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Jordan
Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of labor a fixed or a variable cost?
c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Jordan
Cleaning…
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EX 4-20 Activity-based costing for a service company
Obj. 6 Crosswinds Hospital plans to use activity-based costing to assign
hospital indirect costs to the care of patients. The hospital has identified the
following activities and activity rates for the hospital indirect costs:
EXCEL TEMPLATE
Activity
Activity Rate
$ 240 per day
$ 215 per image
$ 50 per physician order
$ 80 per test
$1,000 per operating room hour
Room and meals
Radiology
Pharmacy
Chemistry lab
Operating room
The activity usage information associated with the two patients is as follows:
Abel Putin
Cheryl Umit
Number of days
6 days
4 days
Number of images
Number of physician orders
4 images
3 images
6 orders
2 orders
Number of tests
5 tests
4 tests
Number of operating room hours
8 hours
4 hours
A. Determine the activity cost associated with each patient.
Answer
Why is the total activity cost different for the two patients?
B.
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ER
ES
Study
Question 6
In applying the high-low method, what is the fixed cost?
Month
Miles
January 76000
February 52000
March
66000
April
84000
O$12000
$40000
O$45000
$32000
Total Cost
$122000
110000
n the web and Windows
118000
150000
Click if you would like to Show Work for this question: Open Show Work
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D
Question 4
A physician practice has two services lines and an administrative group. The table below provides
the revenues and expenses for each department. How much of the administrative cost should be
allocated to Internal Medicine when revenue is used as the allocation basis?
Internal Medicine
Pediatrics
Administration
Total
O $60,000
O $72,000
$75,000
Revenue
$600,000
$400,000
$1,000,000
None of these is correct.
Expense
$500,000
$300,000
$120,000
$980,000
Profit
$100,000
100,000
-120,000
$80,000
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Question 16
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Current Attempt in Progress
If the required direct materials purchases are 32000 pounds, the direct materials required for production is three times
the direct materials purchases, and the beginning direct materials are three and a half times the direct materials
purchases, what are the desired ending direct materials in pounds?
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O 80000
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Chapter 11 & 13 Review G
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Subr
Palace Company has two service departments and two user departments. The number of employees in each department is:
Personnel
Cafeteria
25
Producing Department A
Producing Department B
067
255
580
The fixed costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $96,280
during a given period, the amount of cost allocated to the Cafeteria under the step method would be:
Multiple Choice
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Question 17
'USC' STANDS FOR UNIT SHIPPING COST
AREA X
AREA Y
AREA Z
SUPPLIES
200
PLANT A
200
USC: 5
USC: 8
USC: 7
400
400
PLANT B
800
USC: 4
USC: 2
USC: 9
100
400
PLANT C
500
USC: 7
USC: 4
USC: 8
DEMANDS
600
500
400
HOW MUCH IS THE IMPROVEMENT INDEX OF (PLANT A, AREA Z)?
O -2
O 5
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Introduction te X
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O The Finance St X
Foundations o x C Seafood - Eat X G
Wakefield, Rhc X
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Chapter 17 Homework
eВook
Show Me How
Costs per Equivalent Unit
The following information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production.
ACCOUNT Work In Process-Baking Department
ACCOUNT NO.
Date
Item
Balance
Debit
Credit
Debit
Credit
Dec.
1 Bal., 8,700 units, 2/5 completed
19,140
31 Direct materials, 156,600 units
297,540
316,680
31 Direct labor
82,180
398,860
31 Factory overhead
46,220
445,080
31 Goods finished, 158,700 units
428,316
16,764
31 Bal., ? units, 4/5 completed
* 16,764
a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit answers to the nearest cent.
1. Direct materials cost per equivalent unit
2. Conversion cost…
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Da
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60
CO
%24
Maintenance Department Costs
M
%
$4
#
Next page
O d. $55,000
c. $91,000
O b. $66,860
a. $63,360
Using 0 and 3,000 patient-days, the total cost at an activity level of 8,000 customer patient-days would be:
# of Patient-Days
0007
000'9
000's
000t
000'€
000't
000's
000S
o00'oz
000
000o৮
000
number of patient-days serviced over the past year.
The graph below shows monthly data collected on facilities maintenance department costs and on the
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eBook Question Content Area Activity-based costing for a service company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $219 per day Radiology $309 per image Pharmacy $50 per physician order Chemistry lab $91 per test Operating room $680 per
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Need help with total expected cost
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Plz answer the question in 10 mints plzzzzz it's very urgent
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Question 18
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Current Attempt in Progress
E-Flix rents DVDS that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the videos to its
customers. Information on those activities for the month of July follows:
Estimated
Expected Use of
Cost Drivers
Cost Pools
Cost Drivers
Overhead Cost
Order taking costs
Number of orders
$20,592
187,200 orders
Technology support
Number of minutes
$11,700
234,000 minutes
Picking and shipping
Number of DVDS
$39,624
330,200 DVDS
costs
During July, the Tucker family placed 17 orders consisting of 21 DVDS. Tucker required 7 minutes of tech support. Customers pay $9.00 per
month to rent unlimited DVDS. Using ABC, how much overhead is applied to the Tucker family account for technology support?
O Some other answer
O $1.87
O $0.05
o$0.35
2:28 P
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10/13/23
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6. Determine the maximum operating income possible with the expanded plant.$fill in the blank 8
7. If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year?$fill in the blank 9
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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!
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Multiple Choice Question 74
In applying the high-low method, what is the fixed cost?
Month
Miles
Total Cost
January
70000
$92000
February
42000
70000
March
60000
88000
April
82000
120000
O $50000
O $17500
O $32000
$18000
Click if you would like to Show Work for this question: Qpen Sho
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View Policies
Current Attempt in Progress
Blossom's Medical operates three support departments and two operating units, Surgery and ER. The support departments are
allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR)
departments is $274500, $164700, and $66000, respectively. Information on the hours used are as follows:
Acct
Admin
HR
Surgery
ER
Hours in Acct
20
48
360
220
Hours in Admin
16
8
120
80
Hours in HR
8
4
65
130
What amount of costs would be allocated from the HR department to the other support departments (Acct and Admin) using the
reciprocal method to allocate costs? (Do not round the intermediate calculations.)
$5438.
$0.
$7203.
$6894.
eTextbook and Media
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t-Chapter 11 & 13 Review
Saved
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Palace Company has two service departments and two user departments. The number of employees in each department is:
Personnel
Cafeteria
25
Producing Department A
Producing Department B
067
255
580
The fixed costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $96,280
during a given period, the amount of cost allocated to the Cafeteria under the step method would be:
Multiple Choice
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Break even point solve proper
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Please correct answer and don't use hand rating
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Question 6 Part 2
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Homework
Exercise 11-31 (Algo) Cost Allocation: Step Method (LO 11-3)
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and
Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and
personnel costs on the basis of labor-hours worked by the employees in each.
eBook
The following data appear in the company records for the current period:
Print
Maintenance
Printing
Developing
4,200
3,100
$11,700
Personnel
Machine-hours
1,400
References
Labor-hours
006
$14,500
006
Department direct costs
$12,800
008
Required:
Allocate the service department costs using the step method, starting with the Maintenance Department (Negative amounts should
be indicated by a minus sign. Do not round intermediate calculations.)
Maintenance
Personnel
Developing
Service department costs
24
(2,800)
12,800
Maintenance
099
(13,360)
Personnel
Total costs…
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-/1
Question 12
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Current Attempt in Progress
Thomsen Computer Company produces three products:
Earth, Wind, and Fire. Earth requires 80 machine setups,
Wind requires 60 setups, and Fire requires 180 setups.
Thomsen has identified an activity cost pool with allocated
overhead of $1500000 for which the cost driver is machine
setups. How much overhead is assigned to each product?
Fire
Wind
Earth
$843750
$281250
$375000
$234375
$703125
$312500
$500000
$500000
$500000
$281250
$500000
$718750
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Question 14
Hermes Hospitals Group (HHG) provides a private hospital medical services to private
clients and company employees who are members of their insurance scheme. Service
Heads coordinate and organize the medical services provided using Medical
Consultants and their own theatre staff and nurses. Each medical procedure or service
has a standard price and costs are carefully controlled by benchmarking against the
NHS using industrial intelligence. A further 10% in costs is allowed based on the goal
to improve the customer's experience by providing more nursing and consumables
such as towels, slippers and other comforts. Customers (patients) are given a risk
assessment and the medical procedure or service is undertaken on a fixed price basis,
subject to major alterations in the service provided. e
HHG prides itself in providing a reliable, high quality service using the latest medical
techniques and highly competent Consultant surgeons. Longer term, HHG would like
to have a full…
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Exercise 1. Classify the below cost on their behavior (Fixed Costs and Variable Costs)
(a) Rent of Factory Building,
(b) Managerial Salaries,
(c)Direct wages,
(d) Direct Materials,
(e) Building Insurance,
(f) Commission of salesman,
(g)Municipal taxes,
(h) Power,
(1) Normal Spoilage,
G) Small tools
Exercise 2
The Information bellow has been taken from production department of XYZ Company for
December is as follows:
Total Costs
Variable Cost
Fixed Cost
Material used in Production
OMR 200000
200000
Labour used
in Production 150000
100000
50000
(Assembly and supervisor)
Production Facilities cost
( 50000
40000
10000
rent general, utilities.)
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Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $420,000 of indirect costs. The
bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based
on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial
Loans. The following information was gathered for the upcoming period:
Department
DLH
Loans Processed
Direct Costs
Consumer
000'0
$280,000
12,000
850
Commercial
0000
000
If Banc Corp. Trust uses a bankwide rate based on the number of loans processed, what would be the total costs for the Commercial
Department?
Multiple Choice
000'0
Graw
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PROBLEM 2-24 Variable and Fixed Costs; Subtleties of Direct and Indirect Costs [LO5, LO6]The Central Area Well-Baby Clinic provides a variety of health services to newborn babies and theirparents. The clinic is organized into a number of departments, one of which is the ImmunizationCenter. A number of costs of the clinic and the Immunization Center are listed below.
Example: The cost of polio immunization tabletsa. The salary of the head nurse in the Immunization Center.b. Costs of incidental supplies consumed in the Immunization Center, such as paper towels.c. The cost of lighting and heating the Immunization Center.d. The cost of disposable syringes used in the Immunization Center.e. The salary of the Central Area Well-Baby Clinic’s information systems manager.f. The costs of mailing letters soliciting donations to the Central Area Well-Baby Clinic.g. The wages of nurses who work in the Immunization Center.h. The cost of medical malpractice insurance for the Central Area Well-Baby…
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- Homework i d nces Ic raw ill Q Problem 11-22A (Algo) Cost behavior and averaging LO 11-1, 11-2 Janice Huffman has decided to start Jordan Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $750 per month. Labor costs are expected to be $70 per house cleaned and supplies are expected to cost $7 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Jordan Cleaning…arrow_forwardEX 4-20 Activity-based costing for a service company Obj. 6 Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: EXCEL TEMPLATE Activity Activity Rate $ 240 per day $ 215 per image $ 50 per physician order $ 80 per test $1,000 per operating room hour Room and meals Radiology Pharmacy Chemistry lab Operating room The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 6 days 4 days Number of images Number of physician orders 4 images 3 images 6 orders 2 orders Number of tests 5 tests 4 tests Number of operating room hours 8 hours 4 hours A. Determine the activity cost associated with each patient. Answer Why is the total activity cost different for the two patients? B.arrow_forwardER ES Study Question 6 In applying the high-low method, what is the fixed cost? Month Miles January 76000 February 52000 March 66000 April 84000 O$12000 $40000 O$45000 $32000 Total Cost $122000 110000 n the web and Windows 118000 150000 Click if you would like to Show Work for this question: Open Show Workarrow_forward
- D Question 4 A physician practice has two services lines and an administrative group. The table below provides the revenues and expenses for each department. How much of the administrative cost should be allocated to Internal Medicine when revenue is used as the allocation basis? Internal Medicine Pediatrics Administration Total O $60,000 O $72,000 $75,000 Revenue $600,000 $400,000 $1,000,000 None of these is correct. Expense $500,000 $300,000 $120,000 $980,000 Profit $100,000 100,000 -120,000 $80,000arrow_forward7arrow_forwardQuestion 16 /1 View Policies Current Attempt in Progress If the required direct materials purchases are 32000 pounds, the direct materials required for production is three times the direct materials purchases, and the beginning direct materials are three and a half times the direct materials purchases, what are the desired ending direct materials in pounds? oport 48000 O 32000 O 80000 O 16000 ) hp prt sc delete home % 6 num backspace lock P home K enter pause tn tn USE YOUR SMARTPHONE FOR M Iarrow_forward
- + I/ MI * 00 HI ( (O 因 %#3 Chapter 11 & 13 Review G Saved Help Save & Exit Subr Palace Company has two service departments and two user departments. The number of employees in each department is: Personnel Cafeteria 25 Producing Department A Producing Department B 067 255 580 The fixed costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $96,280 during a given period, the amount of cost allocated to the Cafeteria under the step method would be: Multiple Choice 10:25 P nere to search 4/26/202 PrtSc Delete F8 F10 F11 F12 Ins +D 65 区 F5 F4 & %23 5. 80 4. D G Alt Ctrl Altarrow_forwardQuestion 17 'USC' STANDS FOR UNIT SHIPPING COST AREA X AREA Y AREA Z SUPPLIES 200 PLANT A 200 USC: 5 USC: 8 USC: 7 400 400 PLANT B 800 USC: 4 USC: 2 USC: 9 100 400 PLANT C 500 USC: 7 USC: 4 USC: 8 DEMANDS 600 500 400 HOW MUCH IS THE IMPROVEMENT INDEX OF (PLANT A, AREA Z)? O -2 O 5arrow_forwardIntroduction te X Math Fundam x O The Finance St X Foundations o x C Seafood - Eat X G Wakefield, Rhc X Login A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false CengageNOW Chapter 17 Homework eВook Show Me How Costs per Equivalent Unit The following information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production. ACCOUNT Work In Process-Baking Department ACCOUNT NO. Date Item Balance Debit Credit Debit Credit Dec. 1 Bal., 8,700 units, 2/5 completed 19,140 31 Direct materials, 156,600 units 297,540 316,680 31 Direct labor 82,180 398,860 31 Factory overhead 46,220 445,080 31 Goods finished, 158,700 units 428,316 16,764 31 Bal., ? units, 4/5 completed * 16,764 a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit answers to the nearest cent. 1. Direct materials cost per equivalent unit 2. Conversion cost…arrow_forward
- Daarrow_forward60 CO %24 Maintenance Department Costs M % $4 # Next page O d. $55,000 c. $91,000 O b. $66,860 a. $63,360 Using 0 and 3,000 patient-days, the total cost at an activity level of 8,000 customer patient-days would be: # of Patient-Days 0007 000'9 000's 000t 000'€ 000't 000's 000S o00'oz 000 000o৮ 000 number of patient-days serviced over the past year. The graph below shows monthly data collected on facilities maintenance department costs and on thearrow_forwardeBook Question Content Area Activity-based costing for a service company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $219 per day Radiology $309 per image Pharmacy $50 per physician order Chemistry lab $91 per test Operating room $680 perarrow_forward
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