Question: this is all the information i was given :( Dave Meltzer vacationed at Lake Tahoe last winter. Unfortunately, he broke his ankle while skiing and




Dave Meltzer vacationed at Lake Tahoe last winter. Unfortunately, he broke his ankle while skiing and spent two days at the Sierra University Hospital. Meltzer's insurance company received a $4,700 bill for his two-day stay. (Click the icon to view the cost data.) Meltzer believes the overhead charge is outrageous. He comments, "There was nothing I could do about it. When they come in and dab your stitches, it's not as if you can say, 'Keep your cotton roll. I brought my own."' Read the requirements. One item that caught Meltzer's attention was an $11.83 charge for a roll of cotton. Meltzer is a salesman for Johnson \& Johnson and knows that the cost to the hospital of the roll of cotton is between $2.40 to $3.20. He asked for a breakdown of the $11.83 charqe. The accounting office of the hospital sent him the 1. Compute the overhead rate Sierra University Hospital charged on the cotton roll. 2. What criteria might Sierra use to justify allocation of the overhead items b-i in the preceding list? Examine each item separately and match it to the appropriate criteria. 3. What should Meltzer do about the $11.83 charge for the cotton roll? Requirement 1. Compute the overhead rate Sierra University Hospital charged on the cotton roll. Begin by determining the formula, then calculate the overhead rate. (Enter the percentage as a whole number.) =Overheadrate=% Requirement 2. What criteria might Sierra use to justify allocation of the overhead items b-i in the preceding list? Examine each item separately and match it to the appropriate criteria. (Complete all answer boxes.)
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