Prod corect Re You did not receive full credit for this question in a previ 8 po

Question

Prod corect Re You did not receive full credit for this question in a previ 8 points l-Eye Radiologists (OR) does various types of diagnostic imaging Radiologists perform tests using sophisticated equipment OR's management wants to compute th forming tests for two different types of patients those who are hospitalized (including those in emergency rooms) and those who are not hospitalized but are referre ysicians. The data for June for the two categones of patients follow Total Units (ie, procedures) produced Equipment-hours used Direct labor-hours Direct labor costs Overhead costs 1,470 390 650 $39.200$9,600 $48800 50.700 620 250 490 850 140 160 e accountant frst asigns overhead costs to two pools overthead related to equipment hours and overhead related to labor-hours The analysis of overhead accour ccountant follows Supplies indrect labor and supervision Equipment depreciation and maintenance Miscelaneous AmountRelated to 4720Equipment-hours 12.640 Labor hours 18,560Labor-hours 11380 Equipment-hours 3,400 Equipment-hours Required . Compute the predetermined overhead rates assuming that Owl-Eye Radiologists uses equpment-hours to allocate equipment-related overhead costs and labor-h abor-reiated overhead costs

Explanation / Answer

Req A: Total Overheads related to Equipment hours: Utilities 4720 Equipment depreciation and maintenance 11380 Miscellenous 3400 Total Equipment related overheads 19500 Total overheads related to Labour hours Supplies 12640 Indirect labour and Supervision 18560 Total Labour related overheads 31200 Predetermined Overheads rates: Rate for Equipemtn related overhead cost = Total Equipment related Overheads/ Equipment hours (19500/390)= $ 50 per hour Rate for Labour related overhead cost=Total labour related overheads cost/ Labour hours (31200/650) = $ 48 per labour hour Req B: Total Cost and Cost per unit: HOSPITAL PATIENT OTHER PATIENT Labour cost 39200 9600 Add: Overheads: Equipment related overheads(@50 per equipment hours) 12500 7000 (250 hours@50) (140 hours@50) Labour related overheads(@48 per labour hour) 23520 7680 (490 hours@48) (160 hours@48) Total cost 75220 24280 Number of units 620 850 Cost per unit 121.32 28.56 Total Cost 75220 24280 Cost per unit 121.32 28.56

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