Apply the Concepts

A pediatric ward in a metropolitan hospital has the following information:

Resources	Cost of Resources				Activities	Nursing hours
Supervision		$80,000			Supervising nurses		2,000
Supplies and uniforms		40,000			Treating patients		5,000
Salaries		500,000			Providing hygienic care		4,000
Computer		15,000			Responding to requests		6,000
Monitor		30,000			Monitoring patients		3,000
Total		$665,000					20,000

• Monitors are used only for the monitoring activity
• The one computer is used 1,200 hours for supervisory work and 800 hours for monitoring work
• The nursing resources (supplies, uniforms, and labor) are assigned to activities using nursing hours. The nursing supervisor spends 100 percent of her time on supervision.

Required:

1.

Fill in the following table that represents the work distribution matrix for the pediatric ward (if an amount is zero, enter "0"):

Percentage of Time on Each Activity
Activity	Supervisor	Nurses
Supervising nurses	%	%
Treating patient	%	%
Providing hygienic care	%	%
Responding to requests	%	%
Monitoring patients	%	%

2.

Select all resources where driver tracing is used to assign costs to activities:

3.

Calculate the cost of each activity:

Activities	Cost
Supervising nurses	$
Treating patients
Providing hygienic care
Responding to requests
Monitoring patients

4.

Select all the activities that are secondary activities:

5.

Calculate the final cost of each activity below, assuming the cost of secondary activities is assigned to primary activities in proportion to the labor content of primary activities (if an amount is zero, enter "0"; round to the nearest dollar):

Activities	Final cost
Supervising nurses	$
Treating patients
Providing hygienic care
Responding to requests
Monitoring patients