7.

Owl-Eye Radiologists (OR) does various types of diagnostic imaging. Radiologists perform tests using sophisticated equipment. OR's management wants to compute the costs of performing tests for two different types of patients: those who are hospitalized (including those in emergency rooms) and those who are not hospitalized but are referred by physicians. The data for June for the two categories of patients follow. Units (i.e., procedures) produced Equipment-hours used Direct labor-hours Direct labor costs Overhead costs Hospital Patients 630 250 490 $39,209 Other Patients 870 150 200 $12,600 Total 1,500 400 690 $51,200 $55,480 The accountant first assigns overhead costs to two pools: overhead related to equipment-hours and overhead related to labor-hours. The analysis of overhead accounts by the cost accountant follows. Account Utilities Supplies Indirect labor and supervision Equipment depreciation and maintenance Miscellaneous Amount Related to: $ 4,800 Equipment-hours 12,630 Labor-hours 23,250 Labor-hours 11,370 Equipment hours - 3,430 Equipment-hours Required: a. Compute the predetermined overhead rates assuming that Owl-Eye Radiologists uses equipment-hours to allocate equipment: related overhead costs and labor-hours to allocate labor-related overhead costs. b. Compute the total costs of production and the cost per unit for each of the two types of patients undergoing tests in June. Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rates assuming that Owl-Eye Radiologists uses equipment-hours to allocate equipment- related overhead costs and labor-hours to allocate labor-related overhead costs. Overhead Rate per hour Equipment-related Labor-related per hour Required A Required B > a. Compute the predetermined overhead rates assuming that Owl-Eye Radiologists uses cyurpe. related overhead costs and labor-hours to allocate labor-related overhead costs. b. Compute the total costs of production and the cost per unit for each of the two types of patients underg- Complete this question by entering your answers in the tabs below. Required A Required 6 Compute the total costs of production and the cost per unit for each of the two types of patients undergoing te (Round "Cost per unit" to 2 decimal places.) Hospital Patients Other Patients Total cost Cost per unit