Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Question
Chapter 8, Problem 2MAD
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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Subject : Accounting
Classic Hospital bases its budgets on patient-visits. The hospital's static budget forSeptember appears below:
Budgeted number of patient-visits ............. 9,8000Budgeted variable overhead costs:Supplies (@ $2.20 per patient-visit) ....... $21,780Laundry (@ $1.10 per patient-visit) ....... 10,890Total variable overhead cost ...................... 32,670Budgeted fixed overhead costs:Salaries.................................................... 30,710Occupancy costs ..................................... 12,000Total fixed overhead cost........................... 42,710
Total budgeted overhead cost .................... $99,000
Actual results for the month were:Actual number of patient-visits.................. 11,000Supplies...................................................... $28,040Laundry ...................................................... $11,640Salaries ....................................................... $32,480Occupancy…
Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:
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Budgeted number of patient-visits
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9,500
Budgeted variable overhead costs:
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Supplies (@$5.20 per patient-visit)
$
49,400
Laundry (@$8.20 per patient-visit)
Â
77,900
Total variable overhead cost
Â
127,300
Budgeted fixed overhead costs:
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Wages and salaries
Â
52,900
Occupancy costs
Â
85,800
Total fixed overhead cost
Â
138,700
Total budgeted overhead cost
$
266,000
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The total overhead cost at an activity level of 10,200 patient-visits per month should be
Capelli Hospital bases its budgets on patient-visits. The hospital's static budget for August appears below:
Budgeted number of patient-visits
Â
8,300
Budgeted variable costs:
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Â
Supplies (@$8.40 per patient-visit)
$
69,720
Laundry (@$8.10 per patient-visit)
Â
67,230
Total variable cost
Â
136,950
Budgeted fixed costs:
Â
Â
Wages and salaries
Â
99,630
Occupancy costs
Â
107,630
Total fixed cost
Â
207,260
Total cost
$
344,210
Budgeted number of patient-visits
Â
8,300
Budgeted variable costs:
Â
Â
Supplies (@$8.40 per patient-visit)
$
69,720
Laundry (@$8.10 per patient-visit)
Â
67,230
Total variable cost
Â
136,950
Budgeted fixed costs:
Â
Â
Wages and salaries
Â
99,630
Occupancy costs
Â
107,630
Total fixed cost
Â
207,260
Total cost
$
344,210
What is total variable cost at activity level of 8,400 patient visits per month?
Chapter 8 Solutions
Managerial Accounting
Ch. 8 - Prob. 1DQCh. 8 - Briefly describe the type of human behavior...Ch. 8 - What behavioral problems are associated with...Ch. 8 - What behavioral problems are associated with...Ch. 8 - Under what circumstances would a static budget be...Ch. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Why should the timing of direct materials...Ch. 8 - Prob. 9DQCh. 8 - Give an example of how the capital expenditures...
Ch. 8 - At the beginning of the period, the Fabricating...Ch. 8 - Pasadena Candle Inc. projected sales of 800,000...Ch. 8 - Pasadena Candle Inc. budgeted production of...Ch. 8 - Pasadena Candle Inc. budgeted production of...Ch. 8 - Prob. 5BECh. 8 - Cash budget Pasadena Candle Inc. pays 40% of its...Ch. 8 - At the beginning of the school year, Craig Kovar...Ch. 8 - Digital Solutions Inc. uses flexible budgets that...Ch. 8 - Static budget versus flexible budget The...Ch. 8 - Prob. 4ECh. 8 - Production budget Healthy Measures Inc. produces a...Ch. 8 - Sales and production budgets Sonic Inc....Ch. 8 - Professional foes earned budget for a service...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Direct labor cost budget Ace Racket Company...Ch. 8 - Prob. 13ECh. 8 - Factory overhead cost budget Sweet Tooth Candy...Ch. 8 - Cost of goods sold budget Delaware Chemical...Ch. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Schedule of cash payments for service company...Ch. 8 - Prob. 20ECh. 8 - Capital expenditures budget On January 1, 20Y6,...Ch. 8 - Prob. 1PACh. 8 - Sales, production, direct materials purchases, and...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Cash budget The controller of Bridgeport...Ch. 8 - Budgeted income statement and balance sheet As a...Ch. 8 - Prob. 1PBCh. 8 - Sales, production, direct materials purchases, and...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Prob. 4PBCh. 8 - Cash budget The controller of Mercury Shoes Inc....Ch. 8 - Budgeted income statement and balance sheet As a...Ch. 8 - Analyze Johnson Stores staffing budget for...Ch. 8 - Prob. 2MADCh. 8 - Prob. 3MADCh. 8 - Prob. 4MADCh. 8 - Ethics in Action The director of marketing for...Ch. 8 - Prob. 3TIFCh. 8 - Evaluating the budgeting system in a service...Ch. 8 - Static budget for a service company A hank manager...Ch. 8 - Objectives of the master budget Dominos Pizza LLC...Ch. 8 - When compared to static budgets, flexible budgets:...Ch. 8 - Prob. 2CMACh. 8 - Ming Company has budgeted sales at 6,300 units for...Ch. 8 - Krouse Company produces two products, forged...
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