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What is thestructure? t are the hospital's expected total costs? 17,50o inpatient days? tient days? b. Wha C. What are the hospital's s estimated total costs at 12,500 inpatient days? At e average cost per inpatient day at 12,500, 15,000, and 17.500 inpa ing Services Department of Ruger Clinic, a multispecialty practice hio, had $100,ooo in direct costs during the year. These costs must be Ruger's three revenue-producing patient services departments using thod. Two cost drivers are under consideration: patient services rev rs of housekeeping services used. The patient services departments total of $5 million in revenues during the year. To support these clinical 4.4 The Housekeeping Toledo, Ohio, h the direct and hou enue and hours rated a e departments used 5,o00 total hours of housekeeping services. activities, the a. What is the value of the cost pool? What is the allocation rate b. if (u) patient services revenue is used as the cost driver and if (2) hours of housekeeping services are used as the cost driver? Refer to problem 4.4. Assume that the three patient services departments are Adult Services, Pediatric Services, and Other Services. The patient services revenue and hours of housekeeping services for each department are as follows: Department Adult Services Pediatric Services Other Services Total Revenue $3,000,000o 1,500,000 Housekeeping Hours 1,500 3,000 500 500,000 $5,000,000o ООО What is the dollar allocation to each patient services department if pati a. D. What is the dollar allocation to each patient services department if c. What is the differern d. Which of the two drivers is better? Why? services revenue is used as the cost driver? housekeeping support are used as the cost driver? tween the two drivers? t is th e dollar difference in the amount allocated to each department be

What is thestructure? t are the hospital's expected total costs? 17,50o inpatient days? tient days? b. Wha C. What are the hospital's s estimated total costs at 12,500 inpatient days? At e average cost per inpatient day at 12,500, 15,000, and 17.500 inpa ing Services Department of Ruger Clinic, a multispecialty practice hio, had $100,ooo in direct costs during the year. These costs must be Ruger's three revenue-producing patient services departments using thod. Two cost drivers are under consideration: patient services rev rs of housekeeping services used. The patient services departments total of $5 million in revenues during the year. To support these clinical 4.4 The Housekeeping Toledo, Ohio, h the direct and hou enue and hours rated a e departments used 5,o00 total hours of housekeeping services. activities, the a. What is the value of the cost pool? What is the allocation rate b. if (u) patient services revenue is used as the cost driver and if (2) hours of housekeeping services are used as the cost driver? Refer to problem 4.4. Assume that the three patient services departments are Adult Services, Pediatric Services, and Other Services. The patient services revenue and hours of housekeeping services for each department are as follows: Department Adult Services Pediatric Services Other Services Total Revenue $3,000,000o 1,500,000 Housekeeping Hours 1,500 3,000 500 500,000 $5,000,000o ООО What is the dollar allocation to each patient services department if pati a. D. What is the dollar allocation to each patient services department if c. What is the differern d. Which of the two drivers is better? Why? services revenue is used as the cost driver? housekeeping support are used as the cost driver? tween the two drivers? t is th e dollar difference in the amount allocated to each department be

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
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What is thestructure? t are the hospital's expected total costs? 17,50o inpatient days? tient days? b. Wha C. What are the hospital's s estimated total costs at 12,500 inpatient days? At e average cost per inpatient day at 12,500, 15,000, and 17.500 inpa ing Services Department of Ruger Clinic, a multispecialty practice hio, had $100,ooo in direct costs during the year. These costs must be Ruger's three revenue-producing patient services departments using thod. Two cost drivers are under consideration: patient services rev rs of housekeeping services used. The patient services departments total of $5 million in revenues during the year. To support these clinical 4.4 The Housekeeping Toledo, Ohio, h the direct and hou enue and hours rated a e departments used 5,o00 total hours of housekeeping services. activities, the a. What is the value of the cost pool? What is the allocation rate b. if (u) patient services revenue is used as the cost driver and if (2) hours of housekeeping services are used as the cost driver? Refer to problem 4.4. Assume that the three patient services departments are Adult Services, Pediatric Services, and Other Services. The patient services revenue and hours of housekeeping services for each department are as follows: Department Adult Services Pediatric Services Other Services Total Revenue $3,000,000o 1,500,000 Housekeeping Hours 1,500 3,000 500 500,000 $5,000,000o ООО What is the dollar allocation to each patient services department if pati a. D. What is the dollar allocation to each patient services department if c. What is the differern d. Which of the two drivers is better? Why? services revenue is used as the cost driver? housekeeping support are used as the cost driver? tween the two drivers? t is th e dollar difference in the amount allocated to each department be
Transcribed Image Text:What is thestructure? t are the hospital's expected total costs? 17,50o inpatient days? tient days? b. Wha C. What are the hospital's s estimated total costs at 12,500 inpatient days? At e average cost per inpatient day at 12,500, 15,000, and 17.500 inpa ing Services Department of Ruger Clinic, a multispecialty practice hio, had $100,ooo in direct costs during the year. These costs must be Ruger's three revenue-producing patient services departments using thod. Two cost drivers are under consideration: patient services rev rs of housekeeping services used. The patient services departments total of $5 million in revenues during the year. To support these clinical 4.4 The Housekeeping Toledo, Ohio, h the direct and hou enue and hours rated a e departments used 5,o00 total hours of housekeeping services. activities, the a. What is the value of the cost pool? What is the allocation rate b. if (u) patient services revenue is used as the cost driver and if (2) hours of housekeeping services are used as the cost driver? Refer to problem 4.4. Assume that the three patient services departments are Adult Services, Pediatric Services, and Other Services. The patient services revenue and hours of housekeeping services for each department are as follows: Department Adult Services Pediatric Services Other Services Total Revenue $3,000,000o 1,500,000 Housekeeping Hours 1,500 3,000 500 500,000 $5,000,000o ООО What is the dollar allocation to each patient services department if pati a. D. What is the dollar allocation to each patient services department if c. What is the differern d. Which of the two drivers is better? Why? services revenue is used as the cost driver? housekeeping support are used as the cost driver? tween the two drivers? t is th e dollar difference in the amount allocated to each department be
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