Bloem Clinic treat patients with various illnesses. The clinic has 3 main operating departments and two...

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Bloem Clinic treat patients with various illnesses. The clinic has 3 main operating departments and two service departments. The main operating departments consist of the General Practitioner's office, the dentist's office and the physiotherapist's office. The service departments consist of the x-ray room and the pharmacy. The following information has been gathered: Nr of employees Prescriptions Floor area (m2) Kilowatt hours Value of equipment X-ray requisitions Nr of patients GP Dentist Physio X-ray Pharmacy 5 5 3 4 2 252 210 8 1000 1 200 500 2 000 600 8 000 9 000 7 000 12 000 2000 R200 000 R750 000 R20 000 R1 000 000 R15.000 180 50 4 550 4 230 3 100 The following expenses were incurred during the first quarter of the year: Rent Water and electricity Depreciation on equipment R80 000 R28 000 R120 000 Equipment insurance Building insurance Cafeteria costs R30 000 R35 000 R75 000 R60 000 X-ray expenses Required 4.1 Compile an overhead allocation statement. Show both the primary and secondary allocation of the overheads. The service departments must be re-allocated as follows: 42 4.2 The costs of the X-ray department on the basis of the number of x-ray requisitions. The costs of the pharmacy on the basis of the number of prescriptions. Calculate the pre-determined overhead rate for each of the main operating departments based on the number of patients. (Round off to two decimals where necessary) (12) (3) 4.3 Calculate the over- or under-applied overheads for the main operating departments. The actual information for each main operating department is as follows: General Practitioner: 4 510 patients with overheads of R232 410 Dentist: Physio: 4 240 patients with overheads of R164 270 3 110 patients with overheads of R3 100 (6) Bloem Clinic treat patients with various illnesses. The clinic has 3 main operating departments and two service departments. The main operating departments consist of the General Practitioner's office, the dentist's office and the physiotherapist's office. The service departments consist of the x-ray room and the pharmacy. The following information has been gathered: Nr of employees Prescriptions Floor area (m2) Kilowatt hours Value of equipment X-ray requisitions Nr of patients GP Dentist Physio X-ray Pharmacy 5 5 3 4 2 252 210 8 1000 1 200 500 2 000 600 8 000 9 000 7 000 12 000 2000 R200 000 R750 000 R20 000 R1 000 000 R15.000 180 50 4 550 4 230 3 100 The following expenses were incurred during the first quarter of the year: Rent Water and electricity Depreciation on equipment R80 000 R28 000 R120 000 Equipment insurance Building insurance Cafeteria costs R30 000 R35 000 R75 000 R60 000 X-ray expenses Required 4.1 Compile an overhead allocation statement. Show both the primary and secondary allocation of the overheads. The service departments must be re-allocated as follows: 42 4.2 The costs of the X-ray department on the basis of the number of x-ray requisitions. The costs of the pharmacy on the basis of the number of prescriptions. Calculate the pre-determined overhead rate for each of the main operating departments based on the number of patients. (Round off to two decimals where necessary) (12) (3) 4.3 Calculate the over- or under-applied overheads for the main operating departments. The actual information for each main operating department is as follows: General Practitioner: 4 510 patients with overheads of R232 410 Dentist: Physio: 4 240 patients with overheads of R164 270 3 110 patients with overheads of R3 100 (6)

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Answer 41 Overhead Allocation Statement Primary Allocation Rent 80000 Water and electricity 28000 De... View the full answer