Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their...
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Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Budgeted Activity Activity Supplies Patient services Budgeted Cost Activity Cost Driver Usage 16,000 $ 2,784,000 41,000 480,000 Surgical hours (SH) Number of patients Square feet 500 Building cost 3,000 The two main surgical units and their actual activity usage follow. Actual Activity Usage Surgical Service Hours Patients Square Feet General surgery 3,400 12,600 400 700 Orthopedic surgery 100 2,300 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. 1. Compute activity rates using activity-based costing. Activity Budgeted Cost Budgeted Activity Usage Activity Rate Supplies Patient services Building cost 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. General surgery -----Activity Usage----- -----Activity rate---- Allocated Cost Supplies Patient services Building cost Overhead cost per patient Orthopedic Surgery -----Activity Usage---- -----Activity rate- Allocated Cost Supplies Patient services Building cost Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Budgeted Activity Activity Supplies Patient services Budgeted Cost Activity Cost Driver Usage 16,000 $ 2,784,000 41,000 480,000 Surgical hours (SH) Number of patients Square feet 500 Building cost 3,000 The two main surgical units and their actual activity usage follow. Actual Activity Usage Surgical Service Hours Patients Square Feet General surgery 3,400 12,600 400 700 Orthopedic surgery 100 2,300 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. 1. Compute activity rates using activity-based costing. Activity Budgeted Cost Budgeted Activity Usage Activity Rate Supplies Patient services Building cost 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. General surgery -----Activity Usage----- -----Activity rate---- Allocated Cost Supplies Patient services Building cost Overhead cost per patient Orthopedic Surgery -----Activity Usage---- -----Activity rate- Allocated Cost Supplies Patient services Building cost
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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