Question: Chapter 21 E connect apter 21 Questions 1 - 2 (of 5) The following information applies to the questions displayed below We Care is an
Chapter 21 E connect apter 21 Questions 1 - 2 (of 5) The following information applies to the questions displayed below We Care is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as muchas 40% As a result the cine wants to better understand its costs It decides to prepare an activity-based cost analysis, Incuding an estimate of the average cost of both general surgery and orthopedic surgery. The clinic's three cost centers and their cost drivers follow Professional salaries Patient services and supplies Building cost s 100,000 Professional hours 27000 Number of patients 10000 600 500 152,000 Square feet The two main surgical units and their related data follow Hours Square Feet Patients 2,400 7600 900 Service General surgery Orthopedic surgery 200 400 Orthopedic surgery requires more space for patients, supplies, and equipment 1. 20.00 points 1. Compute the cost per cost driver for each of the three cost centers. (Round your answers to nearest dollar amount. Omit the "$" sign in your response.) Cost Center Cost per Driver Professional salaries 110 per hour Patient services & supplies 45 per patient MacBook
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
