The MRI department at Community Hospital, a large urban health center, performs magnetic resonance imaging for heart
Question:
The following table projects the number of various types of scans the MRI Department expects to perform next year.
Scan Types (minutes) Projected Number of Procedures
15............... 500
30............... 1,200
45................. 300
60................. 2,200
90 ................. 150
Total ................. 4,350
At the end of the year the MRI Department performed the following number of scans and the actual time spent on each scan:
The total cost of operating the MRI Department ( fixed and variable costs) was $ 1,750,000.
Required:
a. Calculate the predetermined cost per minute of MRI scan time.
b. Based on the predetermined cost per minute calculated in (a), what are the total MRI charges to the patient care units?
c. Prepare a report that analyzes the financial performance of the MRI Department.
d. Write a short report that succinctly summarizes the key findings of your performance analysis in part(c).
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Related Book For
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman
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