Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Chapter 7, Problem 1ADM
A.
To determine
Compute the total number of RVUs (relative value units) expected per day for the coming week.
B.
To determine
Compute the total weekly nurse budget for the coming week.
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Mercy Hospital staffs its medical/surgical floors with nurses depending on the number of pa-
tients assigned to the floor and the severity of their condition. The index used to capture nurse
effort is termed a relative value unit, or RVU. For example, taking vital signs for a single patient
may be equal to one RVU. RVU's are then summed to estimate the total RVU requirements for
the floor. From this, the nursing staff budget is determined.
The medical/surgical floor is scheduled to have 25 patients for each day of the coming
seven-day week. Some patients will require more nursing effort than others, depending on
the severity of their conditions or their ages. The following table summarizes the expected RVU
requirements for the patients:
Number of Patients
RVUS per Day
5
20
8
25
10
30
40
A nurse earns $180 per day and is able to perform 40 RVUS per day.
a. Determine the total number of RVUS expected per day for the coming week.
b. Determine the total weekly nurse budget for the coming…
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
Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for
October appears below:
Budgeted number of patient-visits
Budgeted variable overhead costs:
Supplies (@$6.00 per patient-visit)
Laundry (@$9.00 per patient-visit)
Total variable overhead cost
Budgeted fixed overhead costs:
Wages and salaries
Occupancy costs
Total fixed overhead cost.
Total budgeted overhead cost
Multiple Choice
The total overhead cost at an activity level of 8,400 patient-visits per month
should be:
O
$280,800
$270,300
$267,900
7,700
$ 46,200
69,300
115,500
$257,400
54,900
87,000
141,900
$ 257,400
Chapter 7 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 7 - Prob. 1DQCh. 7 - Briefly describe the type of human behavior...Ch. 7 - What behavioral problems are associated with...Ch. 7 - What behavioral problems are associated with...Ch. 7 - Under what circumstances would a static budget be...Ch. 7 - How do computerized budgeting systems aid firms in...Ch. 7 - Prob. 7DQCh. 7 - Why should the timing of direct materials...Ch. 7 - Prob. 9DQCh. 7 - Give an example of how the capital expenditures...
Ch. 7 - Prob. 1BECh. 7 - Prob. 2BECh. 7 - Prob. 3BECh. 7 - Prob. 4BECh. 7 - Prob. 5BECh. 7 - Cash budget Pasadena Candle Inc. pays 40% of its...Ch. 7 - Prob. 1ECh. 7 - Prob. 2ECh. 7 - Static budget versus flexible budget The...Ch. 7 - Prob. 4ECh. 7 - Prob. 5ECh. 7 - Sales and production budgets Sonic Inc....Ch. 7 - Prob. 7ECh. 7 - Prob. 8ECh. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Prob. 11ECh. 7 - Direct labor cost budget Ace Racket Company...Ch. 7 - Prob. 13ECh. 7 - Factory overhead cost budget Sweet Tooth Candy...Ch. 7 - Cost of goods sold budget Delaware Chemical...Ch. 7 - Prob. 16ECh. 7 - Prob. 17ECh. 7 - Prob. 18ECh. 7 - Schedule of cash payments for service company...Ch. 7 - Prob. 20ECh. 7 - Capital expenditures budget On January 1, 20Y6,...Ch. 7 - Prob. 1PACh. 7 - Sales, production, direct materials purchases, and...Ch. 7 - Prob. 3PACh. 7 - Cash budget The controller of Bridgeport...Ch. 7 - Budgeted income statement and balance sheet As a...Ch. 7 - Prob. 1PBCh. 7 - Sales, production, direct materials purchases, and...Ch. 7 - Budgeted income statement and supporting budgets...Ch. 7 - Cash budget The controller of Mercury Shoes Inc....Ch. 7 - Budgeted income statement and balance sheet As a...Ch. 7 - Prob. 1ADMCh. 7 - Prob. 2ADMCh. 7 - Prob. 3ADMCh. 7 - Ethics in Action The director of marketing for...Ch. 7 - Prob. 3TIF
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