I need to understand the calculations used in figuring the RVU values in the following spreadsheet

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3,675 answers

ferrari5107

3,675 answers

"Graduate of University of Texas at Austin with Mechanical Engr. & Finance."

Top Subjects: Operations Management, Precalculus, Physics

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 Projected Volume Procedure Lab Expense 3500 2200 4300 2900 2700 3550 2000 0.15 0.20 0.10 0.05 0.15 0.25 0.10 Part 1: Calculate the Relative Value Units Lab Expense Divide by GreatestRelative Value common Denominator Procedure units 0.15 0.20 0.10 0.05 0.15 0.25 0.10 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.30 0.40 0.20 0.10 0.30 0.50 0.20 Part 2: Calculate total Relative Value Units Procedure Projected Volume Relative Value Units Total RVU 3500 2200 4300 2900 2700 3550 2000 0.30 0.40 0.20 0.10 0.30 0.50 0.20 1050.00 880.00 860.00 290.00 810.00 1775.00 400.00 6065.00 Part 3: Calculate the cost per procedure Cost Per RVU = 943241/6065 $155.5220 Procedure RVU 1050 880 860 290 810 1775 400 Cost /RVU Cost /Procedure 155.5220 $ 163,298.11 155.5220 $ 136,859.37 155.5220 $ 133,748.93 155.5220$45,101.38 155.5220 $ 125,972.83 155.5220 $ 276,051.57 155.5220 $62,208.80 $ 943,241.00 Total