The number of blood tests performed and the related costs over the last nine months in Brentline Hospital are givenbelow:MonthJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberBlood Tests Blood TestPerformed4,3605,5003,4503,1403,2822,4002,9183,7004,080Costs$35,310$41,950$28,626$26,262$27,961$21,800$24,723$30,116$33,250Required:1. Using the high-low method, estimate the cost formula for blood tests. (Round cost per unit answer to 2 decimalplaces.) 2. Using the cost formula you derived above, what blood test costs would you expect to be incurred during a monthin which 3,290 blood tests are performed? (Round your intermediate calculations answer to 2 decimal places.)Variable costFixed costTotal cost$0

The high-level method is used to separate fixed and variable costs from the mixed costs of…

Answered: The number of blood tests performed and…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter15: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 4MAD

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Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be:Disposable supplies$281,800Depreciation expense50,800Utilities29,600Nurse salaries423,200Technician wages138,600Total operating room overhead$924,000The overhead costs will be assigned to procedures, based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs.a. Determine the predetermined operating room overhead rate for the year.$ per hour b. Bill Harris had a 8-hour procedure on January 22. How much…
APA Medical Center has collected data on all of its activities for the past seven months. Data for the cardiac nursing care follow (Month, Cost, Hours of Nursing Care, respectively): September 2012 P69,500 for 1,700 hours; October 2012 P64,250 for 1,550 hours; November 2012 P52,000 for 1,200 hours; December 2012 P66,000 for 1,600 hours; January 2013 P83,000 for 1,800 hours; February 2013 P66,550 for 1,330 hours; March 2013 P79,500 for 1,700 hours. Upon looking into the events that happened at the end of 2012, you find that the cardiology ward bought a cardiac monitoring machine for the nursing station. A decision was also made to add a new supervisory position for the evening shift. Monthly depreciation on the monitor and the salary of the new supervisor totals P10,000. Calculate the fixed cost and variable rate applicable to March 2013
8. Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be:
The Valley Hospital measures the in-patient occupancy of the hospital by determining the number of patient days divided by the number of available bed days in the hospital for a time period. The following in-patient data are available for the months of April, May, and June: April May June Admitted patients 1,440 1,860 2,250 Average length of stay per patient 4.0 days 3.5 days 3.0 days The hospital has 200 rooms. One hundred rooms are private and have a single bed per room.The other hundred rooms are semi-private with two beds per room. a. Determine the number of in-patient days for each month. Number of in-patient Days April fill in the blank 1 May fill in the blank 2 June fill in the blank 3 b. Determine the available bed days for each month. Available Bed Days April fill in the blank 4 May fill in the blank 5 June fill in the blank 6 c. Determine the occupancy…
8. Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $350,100 Depreciation expense 63,100 Utilities 36,700 Nurse salaries 525,800 Technician wages 172,300 Total operating room overhead $1,148,000
oehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $402,900 Depreciation expense 100,900 Utilities 43,000 Nurse salaries 374,600 Technician wages 170,600 Total operating room overhead $1,092,000 The overhead costs will be assigned to procedures, based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. Determine the predetermined operating room overhead rate for the year. Round your answer to the…
Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $299,600 Depreciation expense 75,000 Utilities 32,000 Nurse salaries 278,500 Technician wages 126,900 Total operating room overhead $812,000 The overhead costs will be assigned to procedures, based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. a. Determine the predetermined operating room overhead rate for the year.$ b. Bill Harris had a five-hour…
Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $213,500 Depreciation expense 38,500 Utilities 22,400 Nurse salaries 320,600 Technician wages 105,000 Total operating room overhead $700,000 The overhead costs will be assigned to procedures, based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. a. Determine the predetermined operating room overhead rate for the year. $__ per hour b. Bill Harris had a…
Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $170,800 Depreciation expense 30,800 Utilities 17,900 Nurse salaries 256,500 Technician wages 84,000 Total operating room overhead $560,000 The overhead costs will be assigned to procedures based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. a. Calculate the estimated number of operating room hours for the year.fill in the blank 1 hours b. Determine the…
Question: Assume that an HMO's capitation payment to PCPs is $20 PMPM, but 15% of this amount is placed in the PCP risk pool. The budgeted amount for specialty and hospital costs is $40 PMPM. The purpose of the risk pool is to encourage the PCPs to take actions that cause realized specialty and hospital costs to be less than those budgeted. Cost is measured by the amount the HMO spends on each physician's referral. There are three PCPs: Physician A, Physician B, and Physician C. Assume that each physician has 1,000 patients. Suppose Physician A's actual referral costs are $500,000, Physician B's are $540,000, and Physician C's are $620,00. Finally, suppose that no PCP will receive any funds from the risk pool if it is empty at the end of the year, but if there are referral funds left in the risk pool at the end of the year, they will be divided equally among the three physicians. 1) What is the amount of referral gain (loss) for Physician A? a. -$100,000 b. -$36,000 c. -$20,000 d.…
Aspen Medical Laboratory performs comprehensive blood tests for physicians and clinics throughout the Southwest. Aspen uses a standard process-costing system for its comprehensive blood work. Skilled technicians perform the blood tests. Because Aspen uses a standard costing system, equivalent units are calculated using the FIFO method. The standard cost sheet for the blood test follows (these standards were used throughout the calendar year): For the month of November, Aspen reported the following actual results: a. Beginning work in process: 1,250 tests, 60 percent complete b. Tests started: 25,000 c. Ending work in process: 2,500 tests, 40 percent complete d. Direct labor: 47,000 hours at 19 per hour e. Direct materials purchased and used: 102,000 at 4.25 per ounce f. Variable overhead: 144,000 g. Fixed overhead: 300,000 h. Direct materials are added at the beginning of the process. Required: 1. Explain why the FIFO method is used for process costing when a standard costing system has been adopted. 2. Calculate the cost of goods transferred out (tests completed and transferred out) for the month of November. Does standard costing simplify process costing? Explain. 3. Calculate price and quantity variances for direct materials and direct labor.
The pharmacy in a busy hospital uses pre-determined rates for absorbing total overheads, based on the budgeted number of prescriptions to be handled. A rate of $7 per prescription has been calculated, and the following overhead expenditures have been estimated at two activity levels. Total overheads Number of prescriptions $ 97,000 13,000 109,000 16,000 During a particular period fixed overheads were $45,000. Based on the data above, what was the budgeted level of activity in prescriptions to be handled during the period in question? A 13,000 B 15,000 C 16,000 D 33,333

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