In the past, Casiopea Hospital allocated all of its overhead costs to patients based on nursing...

  

Transcribed Image Text:

In the past, Casiopea Hospital allocated all of its overhead costs to patients based on nursing time. Casiopea has decided to switch to an activity based costing system using three activity costs pools. Information related to the new system is as follows: Activity Cost Pool Registration Patient care Billing Patient Activity Measure Mr. Weels Mr. Muncie number of patients nursing time number of bills Estimated overhead costs P75,000 P900,000 P120,000 Data concerning two patients follows: Nursing Time 100 hours 60 hours Estimated activity 1,000 patients 150,000 hours 2,500 bills 23 Number of Bills Required: 1. Under the new activity based costing system, how much overhead cost would be assigned to each patient? (4 points) 2. To determine a price for its services, Casiopea Hospital takes the total cost assigned to a patient and multiples that number by two. Compared to the old system, which patients above will be charged more under the new activity based costing system. (Present the solution using Traditional Costing) (4 points) In the past, Casiopea Hospital allocated all of its overhead costs to patients based on nursing time. Casiopea has decided to switch to an activity based costing system using three activity costs pools. Information related to the new system is as follows: Activity Cost Pool Registration Patient care Billing Patient Activity Measure Mr. Weels Mr. Muncie number of patients nursing time number of bills Estimated overhead costs P75,000 P900,000 P120,000 Data concerning two patients follows: Nursing Time 100 hours 60 hours Estimated activity 1,000 patients 150,000 hours 2,500 bills 23 Number of Bills Required: 1. Under the new activity based costing system, how much overhead cost would be assigned to each patient? (4 points) 2. To determine a price for its services, Casiopea Hospital takes the total cost assigned to a patient and multiples that number by two. Compared to the old system, which patients above will be charged more under the new activity based costing system. (Present the solution using Traditional Costing) (4 points)

Answer rating: 100% (QA)

Solution 2 Activity Gost pool Registration 75000 patient care 900 cus Billing Thus E... View the full answer