Regis Place is a health-care facility that has been allocating its overhead costs to patients based on number of patient days. The facility’s overhead costs total $2,172,240 per year and the facility (which operates monthly at capacity) has a total of 60 beds available. (Assume a 360-day year.) The facility’s accountant is considering a new overhead allocation method using the following information: Rooms are cleaned daily; laundry for rooms is done, on average, every other day. d. Assume a patient stayed at Regis Place for six days. The patient was in a single room and required six hours of nursing care and 30 hours of physical therapy. 1. What overhead cost would be assigned to this patient under the current method of overhead allocation? $______ 2. What overhead cost would be assigned to th
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Regis Place is a health-care facility that has been allocating its overhead costs to patients based on number of patient days. The facility’s overhead costs total $2,172,240 per year and the facility (which operates monthly at capacity) has a total of 60 beds available. (Assume a 360-day year.) The facility’s accountant is considering a new overhead allocation method using the following information:
Rooms are cleaned daily; laundry for rooms is done, on average, every other day.
d. Assume a patient stayed at Regis Place for six days. The patient was in a single room and required six hours of nursing care and 30 hours of physical therapy.
1. What overhead cost would be assigned to this patient under the current method of overhead allocation? $______
2. What overhead cost would be assigned to this patient under the ABC method of overhead allocation?
| Rooms | $ |
| Laundry | $ |
| Nursing care | $ |
| Physical therapy | $ |
| General services | $ |
| Total | $ |
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