Question

Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had the following cost and output information:
Direct materials ... $ 750
Hygienist’s salary ... $4,250
Overhead ....... $5,000
Number of treatments ... 100
Required:
1. Calculate the cost per treatment for April.
2. Calculate the cost of services sold for April.
3. What if Lising found a way to reduce overhead costs by 20 percent? How would this affect the profit per treatment?


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  • CreatedSeptember 01, 2015
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