Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hope Clinic is a not - for - profit outpatient facility that provides medical services to both fee - paying patients and low - income

Hope Clinic is a not-for-profit outpatient facility that provides medical services to both fee-paying patients and low-income government-supported patients. Reimbursement from the government is based on total actual costs of services provided, including both direct costs of patient services and indirect operating costs. Patient services are provided through two producing departments, Medical Services and Ancillary Services (includes X-ray, therapy, etc.). In addition to the direct costs of these departments, the clinic incurs indirect costs in two service departments, Administration and Facilities. Administration costs are allocated first based on the number of full-time employees, and Facilities costs are then allocated based on space occupied. Costs and related data for the current month are as follows:
Medical Ancillary
Administration Facilities Services Services
Direct costs $130,000 $61,500 $1,491,400 $700,000
Number of employees 6484
Amount of space occupied (square feet)2,0006007,5002,500
Number of patient visits 7,9753,000
Required
a. Using the step method, prepare a schedule allocating the common service department costs to the producing departments.
Service Producing
Administration Facilities Medical Ancillary
Direct costs Answer
130,000
Answer
61,500
Answer
1,491,100
Answer
700,000
Cost allocations:
Administration: Answer
(130,000)
(1) To Facilities: Answer
32,500
(2) To Medical: Answer
65,000
(3) To Ancillary: Answer
32,500
Facilities: Answer
(94,000)
(4) To Medical: Answer
70,500
(5) To Ancillary: ______________________ Answer
23,500
Total costs Answer
0
Answer
0
Answer
1,626,500
Answer
756,000
b. Determine the amount to be reimbursed from the government for each low-income patient visit.
Medical Ancillary
Cost per patient visit Answer
203.95
Answer
252
image text in transcribed

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

Step: 3

blur-text-image

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

Total Quality Auditing

Authors: Amanda Jo Erven

1st Edition

1733784306, 978-1733784306

More Books

Students also viewed these Accounting questions