The following information relates to the wards in the cardiology department of Good Health Hospital for one accounting period Wards 1 2 3 Number of Beds 12 10 20 Total number of Patients 48 32 108 Total ward staff (excluding consultants) 8 8 12 Ward staff – full-time equivalent 5 4 6 Variable operating costs for period £58,000 £66,000 £98,000 Operating fixed costs £85,000 £67,000 £88,000 General overhead costs £40,000 £40,000 £40,000 General overhead costs are made up of recharges from support services. The total cost of £120,000 is split equally between the three wards. The hospital manager is concerned about the high costs of running the three heart-care wards. She has asked you to investigate their performance. Question Write a report which investigates the costs of operating the three hospital wards. Your report should include appropriate measures of performance for each ward and you should draw conclusions from the costs. Calculate necessary calculations to support your conclusions.
The following information relates to the wards in the cardiology department of Good Health Hospital for one accounting period Wards 1 2 3 Number of Beds 12 10 20 Total number of Patients 48 32 108 Total ward staff (excluding consultants) 8 8 12 Ward staff – full-time equivalent 5 4 6 Variable operating costs for period £58,000 £66,000 £98,000 Operating fixed costs £85,000 £67,000 £88,000 General overhead costs £40,000 £40,000 £40,000 General overhead costs are made up of recharges from support services. The total cost of £120,000 is split equally between the three wards. The hospital manager is concerned about the high costs of running the three heart-care wards. She has asked you to investigate their performance. Question Write a report which investigates the costs of operating the three hospital wards. Your report should include appropriate measures of performance for each ward and you should draw conclusions from the costs. Calculate necessary calculations to support your conclusions.
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter18: Activity-Based Costing
Section: Chapter Questions
Problem 4ADM
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Part (two). The following information relates to the wards in the cardiology department of Good Health Hospital for one accounting period
|
Wards |
1 |
2 |
3 |
|
Number of Beds |
12 |
10 |
20 |
|
Total number of Patients |
48 |
32 |
108 |
|
Total ward staff (excluding consultants) |
8 |
8 |
12 |
|
Ward staff – full-time equivalent |
5 |
4 |
6 |
|
Variable operating costs for period |
£58,000 |
£66,000 |
£98,000 |
|
Operating fixed costs |
£85,000 |
£67,000 |
£88,000 |
|
General |
£40,000 |
£40,000 |
£40,000 |
General overhead costs are made up of recharges from support services. The total cost of £120,000 is split equally between the three wards. The hospital manager is concerned about the high costs of running the three heart-care wards. She has asked you to investigate their performance.
Question
- Write a report which investigates the costs of operating the three hospital wards. Your report should include appropriate measures of performance for each ward and you should draw conclusions from the costs. Calculate necessary calculations to support your conclusions.500 words
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