Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you help with this question? Please provide all logic/formulas used in description. Metropolitan Dental Associates is a large dental practice in Chicago. The firm's

Can you help with this question? Please provide all logic/formulas used in description.

image text in transcribed
Metropolitan Dental Associates is a large dental practice in Chicago. The firm's controller is preparing the budget for the next year. The controller projects a total of 48,000 office visits, to be evenly distributed throughout the year. Eighty percent of the visits will be half- hour appointments, and the remainder will be one-hour visits. The average rates for professional dental services are $55 for half-hour appointments and $105 for one-hour office visits. Ninety percent of each month's professional service revenue is collected during the month when services are rendered, and the remainder is collected the month following service. Uncollectible billings are negligible. Metropolitan's dental associates earn $85 per hour. Metropolitan uses activity-based budgeting to budget office overhead and administrative expenses. Two cost drivers are used: office visits and direct professional labor. The cost-driver rates are as follows: Patient registration and records $4.00 per office visit (of any length) All other overhead and administrative expenses $6.50 per direct professional labor hour Required: 1. Prepare the direct-professional-labor budget schedule for the month of June. 2. Prepare the budget schedule for cash collections during June for professional services rendered during May and June. 3. Prepare the overhead and administrative expense budget schedule for the month of June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the direct-professional-labor budget schedule for the month of June. Professional services in June: One-hour visits hours Half-hour visits hours Total direct professional labor hours Hourly rate for dental associates Total direct professional labor cost Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the budget schedule for cash collections during June for professional services rendered during May and June. May June Half-hour visits Billing rate Total billings for half-hour visits One-hour visits Billing rate Total billings for one-hour visits Total billings during month Percentage of month's billings collected during June Collections during June Total collections in June Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the overhead and administrative expense budget schedule for the month of June. Patient registration and records Other overhead and administrative expenses Total overhead and administrative expenses

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

8th Canadian Edition

111950242X, 1-119-50242-5, 978-1119502425

More Books

Students also viewed these Accounting questions

Question

Purpose: What do we seek to achieve with our behaviour?

Answered: 1 week ago

Question

An action plan is prepared.

Answered: 1 week ago