Seaside Clinic uses activity-based costing to determine the cost of servicing patients. There are three activity pools: patient admissions ($75 per patient), laboratory services ($110 per diagnosis), and x-ray imaging ($350 per image). Harold Reed went to the clinic and had blood drawn regarding 1 separate diagnosis, and he had 4 separate images read and interpreted by a doctor. What is the total activity-based cost of Harold's visit? a.$535 b.$1,510 c.$2,140 d.$1,585
Q: Rs. 15,000 and Direct Expenses - Rs. 3,000. Direct wages Chargeable expenses Opening stock of raw…
A: The prime costs include the total direct costs incurred for the production. Prime cost = Direct…
Q: Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and…
A: Departmental Overhead Rate: An expenditure rate that is determined for each department in the…
Q: In each of the following questions only write down the letter that represents the correct answer.…
A: 1. Total cost = Cost of goods sold + Rental expense + Insurance expense Cost of goods sold =…
Q: Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Choose an answer by this following choices: A. Cash provided/used by operating activities. B. Cash…
A: The cash flow statement activities are classified as operating, investing and financing activities.…
Q: Arlington Town uses an Internal Service Fund to account for its motor pool activities. You have the…
A:
Q: Required information [The following information applies to the questions displayed below.] At the…
A: A material requisition form outlines the goods that must be taken out of stock and utilized in a…
Q: The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is…
A: Activity based costing is the costing technique that helps in allocating the overheads based on…
Q: Briefly explain the controversies around executive compensation.
A: Compensation is the return which has to be paid to the employee on whom the said employee has been…
Q: On January 1, 2021, ABC Corporation, a music record label, licensed to a customer the original…
A: In the given question there is only performance obligation with the customer i.e. to grant license…
Q: 2 1 of 2 nts eBook Hint Print References Mc Graw Hill hp ! Required information Use the following…
A: The question is related to Overheads. The Plantwide Overhead rate is calculated with the help of…
Q: left 0:3 Fraser Company has forecast purchases on account to be $210,000 in March, $270,000 in…
A: The budgeted cash payment indicates the amount of expected cash payment it makes. The company makes…
Q: Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the…
A: Profit margin is the ratio of profitability which shows ratio between operating income and sales…
Q: Goods on consignment should be included in the inventory of
A: As per our protocol we provide solution to the one question only and that too if the question is…
Q: Compute the cost allocations to Dept. S and Dept. T under the reciprocal method: To T: S To S: S
A: Cost Allocation :— cost allocation is the process of assignment of cost in Different Department on…
Q: A. Companies need to keep records and books of account for a year for review by the Inland Revenue…
A: Tax On Incomes : It is the amount which is deducted from the income of the individual / corporate /…
Q: Harry Gryffindor incorporated Harry's Pottery on March 1, 20x7. Harry's Pottery is a merchandising…
A:
Q: (b) Calculate the number of units that the organisation would have to sell if it did not change the…
A: Pricing decisions are very crucial for any Business Entity as these decisions directly affect the…
Q: (Corporate income tax) Sales for J. P. Hulett Inc. during the past year amounted to $4.3 million.…
A: Tax Liability: Your financial obligation to the government in the form of taxes is referred to as…
Q: he following statements is true? bsorption costing treats fixed overhead as an expense in the period…
A: The income statement is prepared using various methods as absorption costing and variable costing.…
Q: There was a problem with the first batch of items produced, so abnormal wastage costs of £0.10 per…
A:
Q: ABC purchased 80% of the voting shares of XYZ Ltd. on Jan.1.2022 for $669,200. The preferred shares…
A: Here discuss about the details of the percentage of voting shares into the equity section of another…
Q: Mullennex Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces…
A: Fixed costs: Fixed costs are the costs incurred by a company irrespective of its level of…
Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…
A: Product cost is the cost incurred on the production or making of a product. It is the cost that…
Q: The following information is available for XYZ Company: Sales (in units) Selling price Variable…
A: The Break-even point is the level of units to be sold by the business entity in order to recover the…
Q: On June 10, Sunland Company purchased $7,800 of merchandise from Blossom Company, terms 4/10, n/30.…
A: Journal Entries - Journal Entries are the primary record of the transaction entered into by the…
Q: The following balances were obtained from the books of Tim Curry plc as at December 31,…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Daenerys Targaryen is the CEO of Snow Dragon, Inc., a wholesaler of environmentally friendly dragon…
A: Lets understand the basics. In allowance method, company estimate some percentage of account…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Calculation of the net pay for both Kayla and Paula for the first week in January. For calculating…
Q: The following information relates to Steele Manufacturing's overhead costs for the month: $35,600…
A: In the business organizations, the benchmark is already established, and the actual performance is…
Q: Amna and Jalal formed a partnership on January 2, 2019. Jalal invested $120,000 in cash. Amna…
A: Profit and loss appropriation A/C It is the account which is being prepared by partnership firm to…
Q: Required information [Use the information provided below to answer the indicated questions.] On June…
A: Bank Reconciliation Statement:- It is the statement which is prepared to reconcile the differences…
Q: Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced.…
A: Factory Overhead Cost- Factory overhead costs are expenses incurred during the production process…
Q: on On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure…
A: A.the amount of cost transferred from Finished Goods to Cost of Goods Sold during the period. Its…
Q: Requirement d. How would your answer to Part c change if Mason contributed the land and other…
A: The Adjusted basis refers to the proportionate value underlying a security or Asset that reflects…
Q: Determine the direct labor cost budget for one year. 2. Determine the number of units a laborer can…
A: Given in the question: Number of employees 30 Number of working days in a month 26…
Q: Hannah Division of Tide Inc has the following data for 2012: Assets available for use is 2,000,000;…
A: Target Rate of return: It refers to the return that an investor would want to make from any capital…
Q: 1st July 2021, Hard Rock Pty Ltd a small construction business purchased two business assets for the…
A: Equipment looses values as time period goes and equipment is used more and more but most equipment…
Q: The return on equity ratio equals net income divided by common stock. True or False
A: In the context of the given question, we are required to comment that the statement is true or…
Q: In preparation for developing its statement of cash flows for the year ended December 31, 2021,…
A: In the context of the given question, we are required to show the statement of investing activities…
Q: Paradise Corp. has determined a standard labor cost per unit of $14 (0.50 hour × $28 per hour). Last…
A: Direct labour costs is cost of labour directly used for production and manufacturing activity.…
Q: The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job…
A: Job order costing is the method of recording cost for each job separately. It is used where the jobs…
Q: Handy Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove…
A: The Overhead allocation is based on the overhead rate and the overhead rate can be calculated by…
Q: any uses a job-order costing system and applies manufacturing overhead cost cost of direct materials…
A: Cost of goods sold refers to the concept which computed all the direct expenses involved in the…
Q: Teat Mountain uses a periodic inventory system in April, 600 units were sold and the following…
A: In the context of the given question, we are required to compute ending inventory and cost of goods…
Q: P21-14. Please answer c,d,e, and SHOW ALL WORKINGS CLEARLY. Also, please indicate whether they are a…
A: Disclaimer As Per Question instruction we have to solve Part c,d,e Note : A journal entry is the…
Q: You are a Toronto based tour operator with a series of flights starting up from Vancouver to Montego…
A: Costing involves analyzing the expenditure incurred in manufacturing an item or rendering a service.…
Q: Prepare a multiple step income statement based on the following account balances: Sales $1,300,000…
A: Income Statement - The income Statement includes Revenue earned and Expenses incurred during the…
Q: O LIFO AVERAGE-COST The ending inventory at September 30 $Enter a dollar amount $Enter a…
A: FIFO METHOD
Q: Alan Myers is a sole trader. He opened a small a fish restaurant four years ago in Glasgow.…
A: Breakeven point is that level of sales revenue at which business is only recovering its total fixed…
Step by step
Solved in 2 steps with 2 images
- Sacred Heart Hospital (SHH) faces skyrocketing nursing costs, all of which relate to its two biggest nursing service linesthe Emergency Room (ER) and the Operating Room (OR). SHHs current cost system assigns total nursing costs to the ER and OR based on the number of patients serviced by each line. Total hospital annual nursing costs for these two lines are expected to equal 300,000. The table below shows expected patient volume for both lines. After discussion with several experienced nurses, Jack Bauer (SHHs accountant) decided that assigning nursing costs to the two service lines based on the number of times that nurses must check patients vital signs might more closely match the underlying use of costly hospital resources. Therefore, for comparative purposes, Jack decided to develop a second cost system that assigns total nursing costs to the ER and OR based on the number of times nurses check patients vital signs. This system is referred to as the vital-signs costing system. The earlier table also shows data for vital signs checks for lines. In an effort to better plan for and control OR costs, SHH management asked Jack to calculate the flexible budget variance (i.e., flexible budget costs - actual costs) for OR nursing costs, including the price variance and efficiency variance. Given that Jack is interested in comparing the reported costs of both systems, he decided to prepare the requested OR variance analysis for both the current cost system and the vital-signs costing system. In addition, Jack chose to use each cost systems estimate of the cost per OR nursing hour as the standard cost per OR nursing hour. Jack collected the following additional information for use in preparing the flexible budget variance for both systems: Actual number of surgeries performed = 950 Standard number of nursing hours allowed for each OR surgery = 5 Actual number of OR nursing hours used = 5,000 Actual OR nursing costs = 190,000 What does each of the calculated variances suggest to Jack regarding actions that he should or should not take with respect to investigating and improving each variance? Also, briefly explain why the variances differ between the two cost systems.The Two Cost Systems Sacred Heart Hospital (SHH) faces skyrocketing nursing costs, all of which relate to its two biggest nursing service linesthe Emergency Room (ER) and the Operating Room (OR). SHHs current cost system assigns total nursing costs to the ER and OR based on the number of patients serviced by each line. Total hospital annual nursing costs for these two lines are expected to equal 300,000. The table below shows expected patient volume for both lines. After discussion with several experienced nurses, Jack Bauer (SHHs accountant) decided that assigning nursing costs to the two service lines based on the number of times that nurses must check patients vital signs might more closely match the underlying use of costly hospital resources. Therefore, for comparative purposes, Jack decided to develop a second cost system that assigns total nursing costs to the ER and OR based on the number of times nurses check patients vital signs. This system is referred to as the vital-signs costing system. The earlier table also shows data for vital signs checks for lines. Calculate the amount of nursing costs that the vital-signs costing system assigns to the ER and to the OR.The Two Cost Systems Sacred Heart Hospital (SHH) faces skyrocketing nursing costs, all of which relate to its two biggest nursing service linesthe Emergency Room (ER) and the Operating Room (OR). SHHs current cost system assigns total nursing costs to the ER and OR based on the number of patients serviced by each line. Total hospital annual nursing costs for these two lines are expected to equal 300,000. The table below shows expected patient volume for both lines. Calculate the amount of nursing costs that the current cost system assigns to the ER and to the OR.
- Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had the following cost and output information: Required: 1. Calculate the cost per treatment for April. 2. Calculate the cost of services sold for April. 3. What if Lising found a way to reduce overhead costs by 20 percent? How would this affect the profit per treatment?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 $230 per day Radiology $185 per image Pharmacy $50 per physician order Chemistry lab $90 per test Operating room $1,030 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 6 days 3 days Number of images 5 images 3 images Number of physician orders 7 orders 2 orders Number of tests 6 tests 2 tests Number of operating room hours 9 hours 5 hours This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the activity cost associated with each patient.…What is the value of the cost pool and allocation rate if patient service is used as cost driver and hours of housekeeping used as a cost driver? $100,000 in direct costs, $5 million in patient service revenues, & 5,000 hrs of housekeeping
- Show a detailed, step by step process for the following question below: “Apollo is a local hospital that offers two types of procedures. Currently, Apollo uses a simple system to calculate the overhead cost per treatment. This is done by taking the total overhead cost and dividing it by the number of treatments. Using this method, the full cost for each procedure is shown below: Procedure X Y Direct costs per procedure £2,610 £1,560 Full cost per procedure £2,831 £1,781 Recently, another competitor has implemented activity based costing (ABC). This has led the finance director to consider whether this alternative costing technique would bring any benefits. She has obtained an analysis of Apollo’s total overheads for the last year and some additional data, all of which is shown below:” Cost Cost driver Administrative costs Administrative time per procedure £935,080 Nursing costs Length of patient stay £3,127,808 Catering…Show a detailed, step by step process for the following question below: “Apollo is a local hospital that offers two types of procedures. Currently, Apollo uses a simple system to calculate the overhead cost per treatment. This is done by taking the total overhead cost and dividing it by the number of treatments. Using this method, the full cost for each procedure is shown below: Procedure X Y Direct costs per procedure £2,610 £1,560 Full cost per procedure £2,831 £1,781 Recently, another competitor has implemented activity based costing (ABC). This has led the finance director to consider whether this alternative costing technique would bring any benefits. She has obtained an analysis of Apollo’s total overheads for the last year and some additional data, all of which is shown below:” Cost Cost driver Administrative costs Administrative time per procedure £935,080 Nursing costs Length of patient stay £3,127,808 Catering…Outpatient Surgery is developing an RVU and product cost for the following surgical procedures, given the projected volumes and samples direct costs. Projected total costs for the Outpatient Surgery department are $20 million ($12 million in direct costs and $8 million in indirect costs). Use the steps provided in your textbook to Calculate the cost per procedure using job-order costing. Procedure Projected Volumes Labor Expense Supply Expense Subcutaneous Tissue Debridement 2,000 $100 $90 Esophagastroduodeno with Biopsy 4,000 $150 $60 Aspiration/Injection of a Joint 8,000 $75 $30 Colonoscopy 10,400 $110 $20 Next, Outpatient Surgery wants to add a cost driver to better represent the causal relationship of their indirect costs to produce a more accurate cost-per-procedure. Using the steps in your textbook assign costs to each procedure using the following information. Procedure Equipment Use (min.) Subcutaneous Tissue Debridement 10 Esophagastroduodeno with…
- Outpatient Surgery is developing an RVU and product cost for the following surgical procedures, given the projected volumes and samples direct costs. Projected total costs for the Outpatient Surgery department are $20 million ($12 million in direct costs and $8 million in indirect costs). Use the steps provided in your textbook to Calculate the cost per procedure using job-order costing. Procedure Projected Volumes Labor Expense Supply Expense Subcutaneous Tissue Debridement 2,000 $100 $90 Esophagastroduodeno with Biopsy 4,000 $150 $60 Aspiration/Injection of a Joint 8,000 $75 $30 Colonoscopy 10,400 $110 $20 Stage 1: Calculate the RVU for each procedure (Show your work): Stage 2: Calculate the total cost for each procedure (Show your work): Next, Outpatient Surgery wants to add a cost driver to better represent the causal relationship of their indirect costs to produce a more accurate cost-per-procedure. Using the steps in your textbook assign costs to each procedure…Jasmine Gonazles, Administrative Director of Small Imaging Center, has been asked by the practice members to see if it is feasible to add more staff to support the practice's mammography service, which currently has (2) analogue film or screen units and (2) technologists. She has compiled the following information to help make the decision: Reimbursement per mammography $75 Equipment costs per month $1600 Technologist cost per mammography $20 Technologist aide cost per mammography $4 Variable cost per mammography $10 Monthly maintenance per machine $700 What is the monthly patient volume needed per month to cover fixed and variable costs? What is the monthly patient volume needed per month if Small Imaging Center desires to cover its fixed and variable costs and make a $5,000 profit on this equipment to cover other costs associated with the organization? If reimbursement decreases to $55 per screen, what is the monthly patient…Jasmine Gonazles, Administrative Director of Small Imaging Center, has been asked by the practice members to see if it is feasible to add more staff to support the practice's mammography service, which currently has (2) analogue film or screen units and (2) technologists. She has compiled the following information to help make the decision: Reimbursement per mammography $75 Equipment costs per month $1600 Technologist cost per mammography $20 Technologist aide cost per mammography $4 Variable cost per mammography $10 Monthly maintenance per machine $700 If a new technologist aide is hired in addition to the two technologists, what is the monthly patient volume needed at the original reimbursement rate to cover variable costs, but not profit?