Question
Hi for Part 1 in this document how do you know to divide by the greatest common denominator? and how do you know that the
Hi for Part 1 in this document how do you know to divide by the greatest common denominator? and how do you know that the greatest common denominator is 0.5?
JOB Order Costing and Relative Value Units
U2 Reference Lab must calculate the relative value and cost per procedure given that the total lab expense is $943,241:
Procedure Projected Volume Lab Expense
A 3500 0.15
B 2200 0.20
C 4300 0.10
D 2900 0.05
E 2700 0.15
F 3550 0.25
G 2000 0.10
Part 1: Calculate the Relative Value Units
Procedure Lab Expense Divide by Greatest Common Denominator Relative Value Units
A 0.15 0.5 0.30
B 0.20 0.5 0.40
C 0.10 0.5 0.20
D 0.05 0.5 0.10
E 0.15 0.5 0.30
F 0.25 0.5 0.50
G 0.10 0.5 0.20
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