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Secure https/ on.com/flow/connect.htm ngage365 MamycSU-Clevelend Coinbase YouTube Univision Course Content Account overview NOW-D Ch Surgery Center is an outpatient surgical clinic that wes protitable for many years, but Medicare has cut ts reimbursemenes by As a result, the as much costs. E decides to prepere an activity besed cost analysis including an estimate of the average cost of borh general surgery and orthopedic surgery. The clinic's three activity cost pools and their cost drivers follow Patsent services and suppiies The two main surgical units and their related dats toilow .Otopec surgery recies mere spece for patents. suppies, ecoment t, ? 2 Compute re cost per cost cher for each ythe mee bauty cost peelt Use the rest to locate cost toboen the surgery and the orthopedic surpery units Compute t orthopedic surpery units otal cost and average cost per patient for boen the general surgery and the Activity Divers to search e?a?.Explanation / Answer
Answer 1. Activity Overhead Cost Driver Quantity Allocation Rate Indirect Costs Professional Salaries 1,600,000 10,000 proff. Hrs 160.00 Per proff. Hr. Patient Services & Suppplies 27,000 600 no. of patients 45.00 per patient Building Costs 150,000 1,500 square feet 100.00 per sq. feet Total 1,777,000 Assigning Overhead Cost to Product Model Using ABC Method Activity Based Overhead Rate General Surgery Orthopedic Surgery Cost Driver Incurred OH Allocated Cost Driver Incurred OH Allocated Professional Salaries 160.00 Per proff. Hr. 2,500 proff. Hrs 400,000.00 7,500 proff. Hrs 1,200,000.00 Patient Services & Suppplies 45.00 per patient 400 no. of patients 18,000.00 200 no. of patients 9,000.00 Building Costs 100.00 per sq. feet 600 square feet 60,000.00 900 square feet 90,000.00 Total Cost 478,000.00 1,299,000.00 No. of Patients 400 200 Average Cost per Patient 1,195.00 6,495.00
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