Please do not give solution in image format thanku Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow.ActivitySuppliesBudgeted Cost Activity Cost Driver$ 2,040,000 Surgical hours (SH)36,000 Number of patients372,000 Square feetPatient servicesBuilding costThe two main surgical units and their actual activity usage follow.Actual Activity UsagePatients300100ServiceGeneral surgeryOrthopedic surgerySurgicalHours2,9007,100SuppliesPatient servicesBuilding cost1. Compute activity rates using activity-based costing.ActivityBudgeted CostSquare Feet7201,680Budgeted ActivityRequired:1. Compute activity rates using activity-based costing.2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for eachsurgery unit.Usage10,0004002,400Budgeted Activity UsageActivity Rate 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgeryunit.General surgerySuppliesPatient servicesBuilding costOrthopedic SurgerySuppliesPatient servicesBuilding cost-----Activity Usage-----Overhead cost per patient-----Activity Usage----------Activity rate----------Activity rate-----Allocated CostAllocated Cost

Under activity based costing method, the cost is allocated to each activity based on its…

Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Supplies Patient services Budgeted Cost Activity Cost Driver $ 2,040,000 Surgical hours (SH) Number of patients Square feet Building cost The two main surgical units and their actual activity usage follow. Service General surgery Orthopedic surgery 36,000 372,000 Activity Actual Activity Usage Supplies Patient services Building cost Surgical Hours 2,900 7,100 Patients 300 100 1. Compute activity rates using activity-based costing. Budgeted Cost Square Feet 720 1,680 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. Budgeted Activity Usage 10,000 400 2,400 Budgeted Activity Usage Activity Rate

Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Supplies Patient services Budgeted Cost Activity Cost Driver $ 2,040,000 Surgical hours (SH) Number of patients Square feet Building cost The two main surgical units and their actual activity usage follow. Service General surgery Orthopedic surgery 36,000 372,000 Activity Actual Activity Usage Supplies Patient services Building cost Surgical Hours 2,900 7,100 Patients 300 100 1. Compute activity rates using activity-based costing. Budgeted Cost Square Feet 720 1,680 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. Budgeted Activity Usage 10,000 400 2,400 Budgeted Activity Usage Activity Rate

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 20E: Activity-based costing for a service company Crosswinds Hospital plans to use activity-based costing...

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ces Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Supplies Service General surgery Orthopedic surgery Patient services Building cost The two main surgical units and their actual activity usage follow. Actual Activity Usage Square Feet 750 Activity Budgeted Cost $ Supplies Patient services Building cost 2,700,000 30,000 368,000 Surgical Hours 2,800 12, 200 Supplies Patient services Building cost Activity Cost Driver Surgical hours (SH) Number of Orthopedic Surgery Supplies Patient services Building cost patients Square feet Patients 300 1. Compute activity rates using activity-based costing. Budgeted Cost 100 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. 1,550 Budgeted Activity Usage 15,000 400 2,300 Budgeted Activity Usage 2.…
Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients: Treating patients Providing hygienic care Responding to requests Monitoring patients Required: Normal Intensive Driver Normal Treatments Intensive Hygienic hours Requests Monitoring hours Patient Category Normal Intensive 7,900 1. Determine the total nursing costs assigned to each patient category. Costs Assigned per patient day per patient day 4,800 32,000 6,000 8,000 19,100 80,000 72,000 Activity Rate $4.00 5.00 2. Output is measured in patient days. Assuming that the normal patient category uses 8,000 patient days and the intensive patient category uses 6,400 patient days, calculate the nursing cost per patient day for each type of patient. Round your answers to the nearest cent. 2.00 3.00
Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients: Patient Category Driver Normal Intensive Activity Rate Treating patients Treatments 7,400 10,000 $4.00 Providing hygienic care Hygienic hours 4,800 18,100 5.00 Responding to requests Requests 32,000 80,000 2.00 Monitoring patients Monitoring hours 6,000 72,000 3.00 Required: 1. Determine the total nursing costs assigned to each patient category. Costs Assigned Normal Intensive 2. Output is measured in patient days. Assuming that the normal patient category uses 8,000 patient days and the intensive patient category uses 6,400 patient days, calculate the nursing cost per patient day for each type of patient. Round your answers to the nearest cent. Normal per patient day Intensive $4 per patient day 3. Conceptual Connection: The supervisor of the surgical ward has suggested that patient days is the only driver needed to assign nursing costs to each type of patient.…
Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $176 per day Radiology $248 per image Pharmacy $38 per physician order Chemistry lab $96 per test Operating room $760 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 5 days 11 days Number of images 4 images 5 images Number of physician orders 7 orders 9 orders Number of tests 2 tests 5 tests Number of operating room hours 3 hours 6.5 hours a. Determine the activity cost associated with each patient. Abel Putin $fill in the blank 1 Cheryl Umit $fill in the blank 2 b. Why is the total activity cost different for the two patients? apparently had a…
Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $175 per day Radiology $247 per image Pharmacy $49 per physician order Chemistry lab $104 per test Operating room $720 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 6 days 11 days Number of images 3 images 7 images Number of physician orders 5 orders 7 orders Number of tests 2 tests 5 tests Number of operating room hours 4 hours 7 hours a. Determine the activity cost associated with each patient. Abel Putin $fill in the blank 1 Cheryl Umit $fill in the blank 2
Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency i clinics. Required: For each of the following costs incurred at Northwest Hospital, indicate whether it would most likely be a of the specified cost object. Cost Cost Object Direct Cost or Indirect Cost Example: Catered food served to patients A particular patient Direct Cost 1. The wages of pediatric nurses The pediatric department 2. Prescription drugs 3. Heating the hospital A particular patient The pediatric department The pediatric department A particular pediatric patient 4. The salary of the head of pediatrics 5. The salary of the head of pediatrics 6. Hospital chaplain's salary A particular patient A particular patient A particular department 7. Lab tests by outside contractor 8. Lab tests by outside contractor
Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate $274 per day $386 per image $61 per physician order $108 per test $940 per operating room hour The activity usage information associated with the two patients is as follows: Room and meals Radiology Pharmacy Chemistry lab Operating room Number of days Number of images Number of physician orders Number of tests Abel Putin LA Abel Putin atient. 3 days 5 images 7 orders Number of operating room hours a. Determine the activity cost associated with each patient. LA 2 tests Cheryl Umi 9 days 6 images 9 orders 4.5 hours 5 tests 6.5 hours Cheryl Umit p. Why is the total activity cost different for the two patients? apparently had a different condition that equired more extensive treatment. Thus, the activity…
Pareto chart and cost of quality report for a service company The administrator of Liberty Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows: Activities Activity Cost Patient registration $ 6,500 Verifying patient information 9,700 Assigning patients 13,000 Searching/waiting for doctor 9,200 Doctor exam 4,900 Waiting for transport 17,500 Transporting patients 16,200 Verifying lab orders 14,500 Searching for equipment 8,200 Incorrect labs 11,300 Lab tests 17,000 Counting supplies 19,000 Looking for supplies 8,200 Staff training 4,800 Total $160,000 a. b. c. d. Classify the…
2.A hospital has the following cost and utilization information Overhead cost: Maintenance costs: $250,000 Cost centers: Ward: $50,000; Coronary care Unit $100,000 Utilization: Ward treats 100 patients; Coronary care unit treats 50 patients A. . What is the average cost of the Ward and Coronary care unit, ignoring overhead costs? B. If you were to allocate overhead costs to the Ward and the coronary care unit, what share would you allocate to each? Explain. C. If the Ward has 2,000 square feet of space and the coronary care unit at 10,000 square feet, calculate average costs for each unit including the appropriate allocation of overhead costs to each.
Kolinski Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Telecommunications and Administration, and two operating departments, Surgery and Recovery. Departmental costs Telecommunications ports Employees Multiple Choice O$317.118 $314,853 $310,244 Service Departments Tele communications $ 26,344 $305,921 31 30 Telecommunications Department costs are allocated on the basis of the number of telecommunications ports in departments and Administration Department costs are allocated on the basis of employees. The total Surgery Department cost after service department allocations is closest to: Administration $ 27,472 14 11 Operating Department Surgery Recovery $ 282,750 $ 599,690 40 74 34 27
Can you help with part 4 of this quesstion? Parts 1, 2, and 3 have been answered. Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of medical procedures (operations) that are considered its “products.” The overhead has been separated into three major activities. The annual estimated activity costs and activity bases follow: ActivityBudgeted Activity CostActivity BaseScheduling and admitting$432,000 Number of patientsHousekeeping4,212,000 Number of patient daysNursing5,376,000 Weighted care unitTotal costs$10,020,000 Total “patient days” are determined by multiplying the number of patients by the average length of stay in the hospital. A weighted care unit (wcu) is a measure of nursing effort used to care for patients. There were 192,000 weighted care units estimated for the year. In addition, Pleasant Stay estimated 6,000 patients and 27,000 patient days for the year. (The average patient is expected to have a a little more than a…
to these two cost pools and two of the hospital's patients-Patient A and Patient B—is provided below: Total ICU Other Estimated number of patient-days Estimated fixed overhead cost Estimated variable overhead cost per patient-day 2,000 $ 3,252,000 $ 236 18,000 20,000 $ 14,468,000 $ 96 $ 17,720,000 Direct materials Patient A $ 5,800 Direct labor $ 28,250 Patient B $ 7,500 $ 38,600 Total number of patient-days (including ICU) Number of patient-days spent in ICU 14 21 0 7 Required (see below for hints, if needed): 1.Assuming McCullough continues to use only one predetermined overhead rate, calculate: a. The predetermined overhead rate. b. The total cost, including direct materials, direct labor, and applied overhead, assigned to Patient A and Patient B. 2. Assuming McCullough calculates two overhead rates as recommended by the staff accountant, calculate: a. The ICU and Other overhead rates. b. The total cost, including direct materials, direct labor, and applied overhead, assigned to…