5. PROJECTED REVENUES AND COSTS PER DEPARTMENT Revenues Inpatient Services Outpatient Services Clinic Services Total revenues...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
5. PROJECTED REVENUES AND COSTS PER DEPARTMENT Revenues Inpatient Services Outpatient Services Clinic Services Total revenues Direct Costs Inpatient Services Outpatient Services Clinic Services Total costs Service Department Costs Financial Services Facilities Housekeeping General Administration Total overhead costs Total Costs Projected Profit Department Financial Services Facilities Housekeeping General Administration Utlization information for allocations: Cost Driver Patient Revenue Square Feet Housekeeping Hours Salary Dollars $ $ $ $ Revenue Direct Costs Indirect Costs Total Costs Profit using only Direct Costs Profit margin % only Direct Costs Profit using Total Costs Profit margin % using Total Costs $ $ $ $ Management considered various cost drivers and made the determiniation to use the following as the most relevant for each service department: 18,500,000 32,600,000 6,250,000 57,350,000 9,275,000 18,250,000 4,500,000 32,025,000 4,750,000 8,500,000 2,750,000 3,500,000 19,500,000 51,525,000 5,825,000 Cost Driver Patient revenue Square feet Housekeeping hrs Salary dollars Inpatient $18,500,000 255,000 90,000 $6,500,000 Outpatient $32,600,000 C. Using Exhibit 6.8 as a guide, complete the P&L projections below. P&L Inpatient 175,000 55,000 $9,000,000 Use Exhibit 6.6 as a guideto complete this table and calculate the allocation rates. Be sure to use Excel functions/formulas to show your w Department Cost Pool Amount Cost Driver Total Utilization Allocation Rate Financial Services Facilities 18,500,000 4,750,000 or rev Sept Housekeeping General Administration Clinic $6,250,000 65,000 30,000 $2,500,000 Use Exhibit 6.7 as a guide to complete the indirect cost allocations to each patient service area. Indirect Cost Allocations Inpatient Outpatient Financial Services Facilities Housekeeping General Administration Total Indirect Costs Outpatient 57,350,000 495,000 Clinic Total $57,350,000 495,000 175,000 $18,000,000 Clinic Total Total 5. PROJECTED REVENUES AND COSTS PER DEPARTMENT Revenues Inpatient Services Outpatient Services Clinic Services Total revenues Direct Costs Inpatient Services Outpatient Services Clinic Services Total costs Service Department Costs Financial Services Facilities Housekeeping General Administration Total overhead costs Total Costs Projected Profit Department Financial Services Facilities Housekeeping General Administration Utlization information for allocations: Cost Driver Patient Revenue Square Feet Housekeeping Hours Salary Dollars $ $ $ $ Revenue Direct Costs Indirect Costs Total Costs Profit using only Direct Costs Profit margin % only Direct Costs Profit using Total Costs Profit margin % using Total Costs $ $ $ $ Management considered various cost drivers and made the determiniation to use the following as the most relevant for each service department: 18,500,000 32,600,000 6,250,000 57,350,000 9,275,000 18,250,000 4,500,000 32,025,000 4,750,000 8,500,000 2,750,000 3,500,000 19,500,000 51,525,000 5,825,000 Cost Driver Patient revenue Square feet Housekeeping hrs Salary dollars Inpatient $18,500,000 255,000 90,000 $6,500,000 Outpatient $32,600,000 C. Using Exhibit 6.8 as a guide, complete the P&L projections below. P&L Inpatient 175,000 55,000 $9,000,000 Use Exhibit 6.6 as a guideto complete this table and calculate the allocation rates. Be sure to use Excel functions/formulas to show your w Department Cost Pool Amount Cost Driver Total Utilization Allocation Rate Financial Services Facilities 18,500,000 4,750,000 or rev Sept Housekeeping General Administration Clinic $6,250,000 65,000 30,000 $2,500,000 Use Exhibit 6.7 as a guide to complete the indirect cost allocations to each patient service area. Indirect Cost Allocations Inpatient Outpatient Financial Services Facilities Housekeeping General Administration Total Indirect Costs Outpatient 57,350,000 495,000 Clinic Total $57,350,000 495,000 175,000 $18,000,000 Clinic Total Total
Expert Answer:
Answer rating: 100% (QA)
Part a Department Cost pool amount Cost Driver Total Utilization Allocation rateCost pool amount Tot... View the full answer
Related Book For
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman
Posted Date:
Students also viewed these accounting questions
-
A moving edge dislocation CD intersects the edge dislocation AB whose slip plane differs from, and is normal to, CD's slip plane. Following dislocation intersection, as a result of the atomic...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
A cylindrical rod of steel (E =207 GPa, 30 106 psi) having a yield strength of 310 MPa (45,000 psi) is to be subjected to a load of 11,100 N (2500 lbf). If the length of the rod is 500 mm (20.0...
-
What would happen if the production frontiers are identical and the community indifference curves are different, but we have constant opportunity costs? Draw a graph of this.
-
How does proofreading take place in the process of DNA replication?
-
Give some examples of external fraud.
-
Refer to Megatropolis Hospitals financial statements below for calculating the ratios requested in questions Megatropolis Hospital Statement of Operations For the Year Ended December 31, 2007...
-
1. What is the Nike current strategic plan/objectives or direction? List 4 important items for future strategic planning. Weighting = 20% 2. What is the Nike current marketing plan/objectives or ...
-
Company A is a global company based in the United States that operates in the financial industry. Company A serves its customers with financial products, such as checking accounts, bank cards, and...
-
Part One: Identify the following Technical Specifications (Tech Specs) of the Chicago Pile number 1 (CP-1) reactor: 1. Thermal power in Watts(thermal), Wth. 2. Fuel material 3. Moderator material 4....
-
How do you graphically illustrate the System Operations Model?
-
What, in your opinion, would be the obstacles in using the project excellence model discussed in the quality award models section?
-
What is a technical review?
-
How do you plan a mission?
-
What is total quality management (TQM)? Why is it important in project management?
-
You are trying to decide how much to save for retirement. Assume you plan to save $7,000 per year with the first investment made one year from now. You think you can earn 6% per year on your...
-
Interview managers at three companies in your area about their use of ERP. How have their experiences been similar? What accounts for the similarities and differences?
-
Turow Trailers assembles horse trailers. Two models are manufactured: G7 and V8. While labor-intensive, the production process is not very complicated. The single plant produces all the trailers with...
-
Telstar Electronics manufactures and imports a wide variety of consumer and industrial electronics, including stereos, televisions, camcorders, telephones, and VCRs. Each line of business ( LOB)...
-
Sylvia Zang is president of the Wilson Division of Performance Technologies, a multinational conglomerate. Zang manages $ 100 million of assets and is currently generating earnings before interest...
-
Take each figure in the 2001 columns and measure its percentage change over 2000. Identify where the most signifi- cant changes have occurred.
-
As with the balance sheet, compare the current-year reported figures in the profit and loss account with the information shown for the prior year. Calculate the percentage change from one year to the...
-
What two events led to the transformation and spread of accounting between the 12th and 15th centuries?
Study smarter with the SolutionInn App