Exercise 18-44 (Algo) Partial Productivity Measures (LO 18-6) Cahalan is a network of clinics performing laser surgery for vision correction. Each clinic tracks the number of patients treated and the number of professional-hours spent on the laser patient procedure. Consultations, follow-up visits, and so on are tracked separately. The following data are from three clinics for the most recent reporting period: Procedures completed Professional hours. Clinic East South North East 370 590 Required: a. Compute the partial productivity measures for professional staff for each of the three clinics. Note: Round your answers to 2 decimal places. Partial Labor Productivity South 1,300 1,720 North 730 1,040

Exercise 18-44 (Algo) Partial Productivity Measures (LO 18-6) Cahalan is a network of clinics performing laser surgery for vision correction. Each clinic tracks the number of patients treated and the number of professional-hours spent on the laser patient procedure. Consultations, follow-up visits, and so on are tracked separately. The following data are from three clinics for the most recent reporting period: Procedures completed Professional hours. Clinic East South North East 370 590 Required: a. Compute the partial productivity measures for professional staff for each of the three clinics. Note: Round your answers to 2 decimal places. Partial Labor Productivity South 1,300 1,720 North 730 1,040

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter18: Activity-based Costing

Section: Chapter Questions

Problem 6PA: Product costing and decision analysis for a service company Pleasant Stay Medical Inc. wishes to...

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Can you help with part 4 of this quesstion? Parts 1, 2, and 3 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…
Product costing and decision analysis for a service company 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: 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: Private insurance reimburses the hospital for these activities at a fixed daily rate of 406 per patient day for all three procedures. Instructions Determine the activity rates. Determine the activity cost for each procedure. Determine the excess or deficiency of reimbursements to activity cost. Interpret your results.
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…
5. The administrator of ABC Hospital would like to know the relationship between the costs of admitting in relation to the number of patients being admitted and determine the cost formula. The following are the related data for the past five months that will be used determine such cost formula. Month |# of Patients Admitted |Admitting Costs January 1,800 P 14,700 February 1,900 P 15,200 March 1,700 P 13,700 April 1,600 P 14,000 May 1,500 P 14,300 The controller suggested to use the high-low method approach to derive for the cost formula. If the controller’s suggestion is to be followed: How much would be the total admitting costs if no patient is admitted in June? 6. The following cost relate to XYZ Corp for the year: Sales commission expenses P 185,000 Direct materials…
3. The administrator of ABC Hospital would like to know the relationship between the costs of admitting in relation to the number of patients being admitted and determine the cost formula. The following are the related data for the past five months that will be used determine such cost formula.Month | # of Patients Admitted |Admitting Costs January 1,800 P 14,700 February 1,900 P 15,200 March 1,700 P 13,700 April 1,600 P 14,000 May 1,500 P 14,300 The controller suggested to use the high-low method approach to derive for the cost formula. If the controller’s suggestion is to be followed: How much would be the total costs if number of patients admitted is 1,750? 4. The administrator of ABC Hospital would like to know the relationship between the costs of admitting in relation to the number of…
1. The administrator of ABC Hospital would like to know the relationship between the costs of admitting in relation to the number of patients being admitted and determine the cost formula. The following are the related data for the past five months that will be used determine such cost formula. Month |# of Patients Admitted |Admitting Costs January 1,800 P 14,700 February 1,900 P 15,200 March 1,700 P 13,700 April 1,600 P 14,000 May 1,500 P 14,300 The controller suggested to use the high-low method approach to derive for the cost formula. If the controller’s suggestion is to be followed: How much would be the variable cost per unit? 2. The administrator of ABC Hospital would like to know the relationship between the costs of admitting in relation to the number of patients…
Product Costing and Decision Analysis for a Service Company 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…
2. The administrator of ABC Hospital would like to know the relationship between the costs of admitting in relation to the number of patients being admitted and determine the cost formula. The following are the related data for the past five months that will be used determine such cost formula.Month | # of Patients Admitted |Admitting CostsJanuary 1,800 P 14,700February 1,900 P 15,200March 1,700 P 13,700April 1,600 P 14,000May 1,500 P 14,300The controller suggested to use the high-low method approach to derive for the cost formula. If the controller’s suggestion is to be followed:How much would be the total fixed costs?
A hospital analyzed their patient data in the ICU and categorized patients into two types: short-term and long-term. The standard quantities of labor and materials for each type of patient for 2011 are: Short term Long term Direct Material (lbs 9 21 Nursing labor (hrs.) 2.5 5 Standard price paid for direct materials (per lb.): $ 10.00 Standard rate for labor (per hour): $ 16.00 Variable overhead rate for ICU (per hour): $ 30.00 Fixed overhead rate for ICU (per hour): $ 40.00 **VOH and FOH are applied (used) on the basis of direct labor hours Actual operating data for 2011 is as follows: Total short-term patients: 4,000…
A hospital analyzed their patient data in the ICU and categorized patients into two types: short-term and long-term. The standard quantities of labor and materials for each type of patient for 2011 are:                                                            Short term                           Long term Direct Material (lbs                                9                                         21 Nursing labor (hrs.)                               2.5                                          5 Standard price paid for direct materials (per lb.): $              10.00 Standard rate for labor (per hour): $              16.00 Variable overhead rate for ICU (per hour): $              30.00 Fixed overhead rate for ICU (per hour): $              40.00 **VOH and FOH are applied (used) on the basis of direct labor hours Actual operating data for 2011 is as follows: Total short-term patients: 4,000…
A hospital analyzed their patient data in the ICU and categorized patients into two types: short-term and long-term. The standard quantities of labor and materials for each type of patient for 2011 are:                                                            Short term                           Long term Direct Material (lbs                                9                                         21 Nursing labor (hrs.)                               2.5                                          5 Standard price paid for direct materials (per lb.): $              10.00 Standard rate for labor (per hour): $              16.00 Variable overhead rate for ICU (per hour): $              30.00 Fixed overhead rate for ICU (per hour): $              40.00 **VOH and FOH are applied (used) on the basis of direct labor hours Actual operating data for 2011 is as follows: Total short-term patients: 4,000…
A hospital analyzed their patient data in the ICU and categorized patients into two types: short-term and long-term. The standard quantities of labor and materials for each type of patient for 2011 are:                                                            Short term                           Long term Direct Material (lbs                                9                                         21 Nursing labor (hrs.)                               2.5                                          5 Standard price paid for direct materials (per lb.): $              10.00 Standard rate for labor (per hour): $              16.00 Variable overhead rate for ICU (per hour): $              30.00 Fixed overhead rate for ICU (per hour): $              40.00 **VOH and FOH are applied (used) on the basis of direct labor hours Actual operating data for 2011 is as follows: Total short-term patients: 4,000…