The Eaton Clinic computes a cost of treating each patient. It allocates costs to departments and then applies departmental overhead costs to individual patients using a different budgeted overhead rate in each department. Consider the following predicted 20X0 data for two of Eaton€™s departments:

3. At the end of 20X0, actual overhead costs were as follows:
Pharmacy ..... $240,000
Medical records .. $305,000
The pharmacy filled 82,000 prescriptions, and the clinic had 65,000 patient visits during 20X0.
Compute the overapplied or underapplied overhead in eachdepartment.

Transcribed Image Text:

Pharmacy S216,000 80,000 Medical Records $246,400 Department overhead cost Number of prescriptions filled Number of patient visits 44,000