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Calculation of meals & residential cost per resident day: Total cost of meals and residential space / Annual resident days Total cost of medical services

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Calculation of meals & residential cost per resident day: Total cost of meals and residential space / Annual resident days Total cost of medical services / Annual assistance hours = Cost per hour ABC cost per resident day based on annual assistance hours Cost per resident day (medical services cost plus food and residential cost): Class A Class B Class C Class D b. Total cost of medical services / No. of assistance contacts = Cost per contact ABC cost per resident day based on number of assistance contacts Cost per resident day (medical services cost plus food and residential cost): Class A Class B Class C Class D ancaster General He the victim of a Moto Vi cho Cambridge Business P Chapter 5 Activity-Based Costing fers a full ursing care. The assisted idents. The current d divides by totalte CO2 NO that MS tends to vary signin P5 P53A ARCA Service Application Grand Haven is a senior living community that off services including independent living, assisted living and skilled nursing care. Vision provides residential space, meals, and medical services (MS) to its reside ing system adds the cost of all of these services (space, meals, and MS) and divi days to get a cost per resident day for each month. Recognizing that MS tend among the residents, Grand Haven's accountant recommended that an ABC system calculate more accurately the cost of MS provided to residents. She decided th he classified into four categories (A, B, C, D) based on the level of services recei representine the lowest level of service and representing the highest level of ser ers being considered for measuring MS costs are number of assistance calls and nu contacts A contact is registered each time an assistance professional provides medias to a resident. The accountant has gathered the following data for the most recent annu BC system be design led that residents es received, with me service. Two conde nd number of asso medical services nt annual period Number of Assis of Assistance Annual Resident Annual Assistance Hours Contacts Resident Classification 60,000 Days 8,760 6,570 4,380 2,190 21,900 15,000 20,000 22,500 32,500 90,000 52.000 52.000 52.000 216,000 Other data: Total cost of medical services for the period. ...... Total cost of meals and residential space......................... $5,000,000 $3,280,000 Required (Round Answers and Intermediate Calculations to the Nearest Dollar) a. Determine the ABC cost of a resident day for each category of residents using assistance house the cost driver. b. Determine the ABC cost of a resident day for each category of residents using assistance as the cost driver. C. Which cost driver do you think provides the more accurate measure of the cost Grand Haven resident? measure of the cost per day fun! 25.4A. Stage Two ABC for Manufacturing Merlot Company has determined its activity cost drivers to be the following: S activity cost pools Cost Pools Setup. ........ Materials handling. ..... Machine operation ... Packing Total indirect manufacturing $ 59,500 16,000 300,000 60,000 Calculation of meals & residential cost per resident day: Total cost of meals and residential space / Annual resident days Total cost of medical services / Annual assistance hours = Cost per hour ABC cost per resident day based on annual assistance hours Cost per resident day (medical services cost plus food and residential cost): Class A Class B Class C Class D b. Total cost of medical services / No. of assistance contacts = Cost per contact ABC cost per resident day based on number of assistance contacts Cost per resident day (medical services cost plus food and residential cost): Class A Class B Class C Class D ancaster General He the victim of a Moto Vi cho Cambridge Business P Chapter 5 Activity-Based Costing fers a full ursing care. The assisted idents. The current d divides by totalte CO2 NO that MS tends to vary signin P5 P53A ARCA Service Application Grand Haven is a senior living community that off services including independent living, assisted living and skilled nursing care. Vision provides residential space, meals, and medical services (MS) to its reside ing system adds the cost of all of these services (space, meals, and MS) and divi days to get a cost per resident day for each month. Recognizing that MS tend among the residents, Grand Haven's accountant recommended that an ABC system calculate more accurately the cost of MS provided to residents. She decided th he classified into four categories (A, B, C, D) based on the level of services recei representine the lowest level of service and representing the highest level of ser ers being considered for measuring MS costs are number of assistance calls and nu contacts A contact is registered each time an assistance professional provides medias to a resident. The accountant has gathered the following data for the most recent annu BC system be design led that residents es received, with me service. Two conde nd number of asso medical services nt annual period Number of Assis of Assistance Annual Resident Annual Assistance Hours Contacts Resident Classification 60,000 Days 8,760 6,570 4,380 2,190 21,900 15,000 20,000 22,500 32,500 90,000 52.000 52.000 52.000 216,000 Other data: Total cost of medical services for the period. ...... Total cost of meals and residential space......................... $5,000,000 $3,280,000 Required (Round Answers and Intermediate Calculations to the Nearest Dollar) a. Determine the ABC cost of a resident day for each category of residents using assistance house the cost driver. b. Determine the ABC cost of a resident day for each category of residents using assistance as the cost driver. C. Which cost driver do you think provides the more accurate measure of the cost Grand Haven resident? measure of the cost per day fun! 25.4A. Stage Two ABC for Manufacturing Merlot Company has determined its activity cost drivers to be the following: S activity cost pools Cost Pools Setup. ........ Materials handling. ..... Machine operation ... Packing Total indirect manufacturing $ 59,500 16,000 300,000 60,000

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