Budget information for this year's operations of the X-ray resource cost pool at Diagnostic Services is shown
Question:
Budget information for this year's operations of the X-ray resource cost pool at Diagnostic Services is shown in Exercise 7.28. Actual X-ray hours totaled 5,200 during the year.
REQUIRED
Prepare a capacity analysis similar to the one in Exhibit, comparing the assignment of fixed X-ray department costs using budgeted, practical, and theoretical capacities.
Transcribed Image Text:
Budgeted Practical Theoretical Capacity 8,760 $57.2603 Capacity Capacity Estimated volume MRI hours Fixed cost rate per scan 2,400 $228.00* $209.00 2,200 Fixed costs allocated to patient services (2,150 hours × fixed cost rate) $490,200 $449,350 $123,110 Allocated to idle capacity Unplanned idle capacity 2,200-2,150) hours X fixed cost rate 11,400 10,450 2,863 Planned idle capacity (2,200-2,200) hours X $228.00 (2,400-2,200) hours X $209.00 (8,760-2,200) hours X $57.2603 41,800 375627 Total Fixed Costs Assigned $501,600 fixed costs2,200 budgeted capacity $228.00 $501600 S501600 $501600
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Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
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