Can you help with the second part of part 4 of this quesstion? Parts 1, 2, 3, and part of question 4 have been answered. Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of medical procedures (operations) that are considered its “products.” The overhead has been separated into three major activities. The annual estimated activity costs and activity bases follow: ActivityBudgeted Activity CostActivity BaseScheduling and admitting$432,000 Number of patientsHousekeeping4,212,000 Number of patient daysNursing5,376,000 Weighted care unitTotal costs$10,020,000 Total “patient days” are determined by multiplying the number of patients by the average length of stay in the hospital. A weighted care unit (wcu) is a measure of nursing effort used to care for patients. There were 192,000 weighted care units estimated for the year. In addition, Pleasant Stay estimated 6,000 patients and 27,000 patient days for the year. (The average patient is expected to have a a little more than a four-day stay in the hospital.) During a portion of the year, Pleasant Stay collected patient information for three selected procedures, as follows: Activity-Base Usage Procedure A Number of patients280 Average length of stayx 6daysPatient days1,680Weighted care units19,200Procedure B Number of patients650 Average length of stayx 5daysPatient days3,250Weighted care units6,000Procedure C Number of patients1,200 Average length of stayx 4daysPatient days4,800Weighted care units24,000 Private insurance reimburses the hospital for these activities at a fixed daily rate of $406 per patient day for all three procedures.Required:1. Determine the activity rates.ActivityActivity RateScheduling and admitting$72per patientHousekeeping$ 156per pdNursing$ 28per wcu2. Determine the activity cost for each procedure.ActivityTotal ActivityCost by ProcedureProcedure A$819,840Procedure B$721,800Procedure C$1,507,2003. Determine the excess or deficiency of reimbursements to activity cost.ActivityExcess (deficiency) ofreimbursement over activity costProcedure A$137,760Procedure B$597,700Procedure C$441,6004. Based on the determination of the excess or deficiency of reimbursement to activity cost, indicate which procedure cost is too high.Procedure A Second part of question 4:Hospital management has decided to further investigate the nursing effort. Determine the weighted care units per patient days for each procedure. Round to one decimal place.Procedure A _______ weighted care units per patient dayProcedure B _______ weighted care units per patient dayProcedure C _______ weighted care units per patient day
Can you help with the second part of part 4 of this quesstion? Parts 1, 2, 3, and part of question 4 have been answered.
Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of medical procedures (operations) that are considered its “products.” The overhead has been separated into three major activities. The annual estimated activity costs and activity bases follow:
Activity
Budgeted Activity Cost
Activity Base
Scheduling and admitting
$432,000
Number of patients
Housekeeping
4,212,000
Number of patient days
Nursing
5,376,000
Weighted care unit
Total costs
$10,020,000
Total “patient days” are determined by multiplying the number of patients by the average length of stay in the hospital. A weighted care unit (wcu) is a measure of nursing effort used to care for patients. There were 192,000 weighted care units estimated for the year. In addition, Pleasant Stay estimated 6,000 patients and 27,000 patient days for the year. (The average patient is expected to have a a little more than a four-day stay in the hospital.)
During a portion of the year, Pleasant Stay collected patient information for three selected procedures, as follows:
Activity-Base Usage
Procedure A
Number of patients
280
Average length of stay
x 6
days
Patient days
1,680
Weighted care units
19,200
Procedure B
Number of patients
650
Average length of stay
x 5
days
Patient days
3,250
Weighted care units
6,000
Procedure C
Number of patients
1,200
Average length of stay
x 4
days
Patient days
4,800
Weighted care units
24,000
Private insurance reimburses the hospital for these activities at a fixed daily rate of $406 per patient day for all three procedures.
Required:
1. Determine the activity rates.
Activity
Activity Rate
Scheduling and admitting
$72
per patient
Housekeeping
$ 156
per pd
Nursing
$ 28
per wcu
2. Determine the activity cost for each procedure.
Activity
Total Activity
Cost by Procedure
Procedure A
$819,840
Procedure B
$721,800
Procedure C
$1,507,200
3. Determine the excess or deficiency of reimbursements to activity cost.
Activity
Excess (deficiency) of
reimbursement over
activity cost
Procedure A
$137,760
Procedure B
$597,700
Procedure C
$441,600
4. Based on the determination of the excess or deficiency of reimbursement to activity cost, indicate which procedure cost is too high.
Procedure A
Second part of question 4:
Hospital management has decided to further investigate the nursing effort. Determine the weighted care units per patient days for each procedure. Round to one decimal place.
Procedure A _______ weighted care units per patient day
Procedure B _______ weighted care units per patient day
Procedure C _______ weighted care units per patient day
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
