Explain a key difference in the interpretation of the ABC data in Exhibit (a) (Patio Grill Company)
Question:
Explain a key difference in the interpretation of the ABC data in Exhibit (a) (Patio Grill Company) and Exhibit (b) (Delaware Medical Center).
(a)
(b)
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Excel - Activity-Based Costing Analysis - Delaware Medical Center :凹fle Eat yer Insert Fermat Pols Data wdow help Type & question for help - Cost Driver Activity Patient Activity Patient Quantity for Cost for Type Cost per Patient Patient Visit Patient of l Type |Volume| Each Typ Co Driver Pool Visit 4Activity Pool Driver Quantity Rate TypeVisit Type PhysicianS 960,000 Physician 240,000 $4.00 Routine Extended Complex Total 80,000 S 320,000 100,000400.005,000 240,0002,000 With Patient 120.00 240,000 960,000 30,0003.00Routine 6,0001,200 10 Nurse 11 Practitioner 12 (NP) Time 13 14 Intern or 15 Resident 16 (R) Time 17 18 Registered 19 Nurse 20 RN) Time 90,000 NP Minutes With Patient Extended Complex Total 320 5.00 30,000 50.000 165,000 125,000 412,500 412,500R 125,000 40.000 | 132.000 | 4.000 Minutes With Patient Extended Complex 12.500 35,000115,500 1,000 115.50 151,80013,200 92,000 8,000 38,1803,320 281,980 RN 245,200 1.15 Routine 132.000 Minutes With Patient Extended Complex 245,200 12,300 11.00 Routine Extended Complex 22 Clerical Tim 135.300 New Patient Visits 33,0003,000 23,1002,100 24 Patients 25 12,300135,300 26 Clerical Tim 61,100 Continuing 12,220 30,0006,000 6,100 1,220 13,200 13,2803.320 27 Continuing 28 Patients Patient Visits Extended | Complex | 1220 5.00 61,100 30 Billing 0.50 Extended Complex 13,200 132,000 13,200 80,0008,000 33,2003,320 245.200 Patient 10.00 Routine ·い14. Extended8000 Complex3,320 35 36 37 38 Both New & Continuing) 10.00 Total 24,520 245.200 Grand Total 2224.560 39 Grand Total $2.224.560 Sheet1 Sheet2 sheet3/ Ready
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