Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 30% As a result, the clinic wants to better understand its costs, I decides to prepare an activity based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic's three activity cost pools and their cost drivers follow Activity Cost Fool Professional salaries Patient services and supplies uding cost Cost Cost Driver 28,520 155,000 $1,683,000 Professional hours uber of patients Square feet The two main surgical units and their related data follow. 10,200 620 feet General surgery Orthopedic surgery 2,000 7,600 610 430 910 238 Orthopedic surgery requires more space for patients, supplies, and equipement Required: 1&2 Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units Compute total cot and average cost per patient for both the general surgery and the orthopedic surgery units (Round your final answers to whole dollar) Activity Professional lates Patent serves and lupplies Dusing ro Surgery Orthopedic Surgery Overhead Cost " 1663000 20820 15000 Activity Chivers 10200 Polonial hous 20 Numbar parents Activity Ris Activity driver Overhead assigned Activity driver cured Overhead assigned 429,000 10.000 Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 30% As a result, the clinic wants to better understand its costs, I decides to prepare an activity based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic's three activity cost pools and their cost drivers follow Activity Cost Fool Professional salaries Patient services and supplies uding cost Cost Cost Driver 28,520 155,000 $1,683,000 Professional hours uber of patients Square feet The two main surgical units and their related data follow. 10,200 620 feet General surgery Orthopedic surgery 2,000 7,600 610 430 910 238 Orthopedic surgery requires more space for patients, supplies, and equipement Required: 1&2 Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units Compute total cot and average cost per patient for both the general surgery and the orthopedic surgery units (Round your final answers to whole dollar) Activity Professional lates Patent serves and lupplies Dusing ro Surgery Orthopedic Surgery Overhead Cost " 1663000 20820 15000 Activity Chivers 10200 Polonial hous 20 Numbar parents Activity Ris Activity driver Overhead assigned Activity driver cured Overhead assigned 429,000 10.000
Expert Answer:
Answer rating: 100% (QA)
Answer To calculate the average cost of general surgery and orthopedic surgery using the activitybas... View the full answer
Related Book For
Financial and Managerial Accounting Information for Decisions
ISBN: 978-1259347641
5th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 40%. As a result, the clinic wants to better understand its...
-
Patient Health is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 50%. As a result, the clinic wants to better understand its...
-
There is a mathematical puzzle called "Four Fours." In it, you use four 4s to make other whole numbers. Examples: You can make 61 (4+4)+4+4-6 Four Fourths You can also make 9! You Try! What other...
-
Use moment-generating functions to prove the two corollaries to Theorem 4.3.3. My(t)=My(t). My(t)
-
A fund is to be set up for an annual scholarship of $5000.00. If the first payment is due in three years and interest is 6.2% compounded quarterly, what amount must be deposited in the scholarship...
-
Using MATLAB, find the solution of a nonlinear single-degree-of-freedom system governed by Eq. (E.1) of Example 13.8 under a pulse load for the following data: \(m=10, k_{1}=4000\), \(k_{2}=1000,...
-
The many identical residents of Whoville love drinking Zlurp. Each resident has the following willingness to pay for the tasty refreshment: First bottle.......$5 Second bottle.....4 Third...
-
On January 1, Year 1, Raven Limo Service, Inc. paid $64,000 cash to purchase a limousine. The limo expected to have a six year useful life and a $10,000 salvage value. On January 1, Year 5 the limo...
-
A 53.5-g Super Ball traveling at 28.5 m/s bounces off a brick wall and rebounds at 18.0 m/s. A high-speed camera records with the wall for 3.05 ms, what is the magnitude of the average acceleration...
-
A lessor will record interest income if a lease is classified as: A. a capital lease. B. an operating lease. C. either a capital or an operating lease.
-
Which of the following will cause a company to show a lower amount of amortization of intangible assets in the first year after acquisition? A. A higher residual value B. A higher amortization rate...
-
A company is most likely to: A. use a fair value model for some investment property and a cost model for other investment property. B. change from the fair value model when transactions on comparable...
-
Cavalier Copper Mines has $840 million in total liabilities and $520 million in shareholders equity. It discloses operating lease commitments over the next five years with a present value of $100...
-
Jordans response about the impact of the different depreciation methods on net profit margin is most likely incorrect with respect to: A. accelerated depreciation. B. straight-line depreciation. C....
-
Write a paper on Medical and Life Insurance Policies
-
TRUE-FALSE QUESTIONS 1. In terms of preliminary analytical procedures, assume that the company has introduced a new product with a low price point and significant customer demand. The auditor would...
-
An electronic instrument is to be isolated from a panel that vibrates at frequencies ranging from \(25 \mathrm{~Hz}\) to \(35 \mathrm{~Hz}\). It is estimated that at least 80 percent vibration...
-
An exhaust fan, having a small unbalance, weights \(800 \mathrm{~N}\) and operates at a speed of \(600 \mathrm{rpm}\). It is desired to limit the response to a transmissibility of 2.5 as the fan...
-
The armature of a variable-speed electric motor, of mass \(200 \mathrm{~kg}\), has an unbalance due to manufacturing errors. The motor is mounted on an isolator having a stiffness of \(10 \mathrm{kN}...
Study smarter with the SolutionInn App