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II need help answering the second question shown 4. Consider a simplified hospital with 5 units, 2 are non-revenue generating (A and B) and 3

image text in transcribedimage text in transcribedII need help answering the second question shown

4. Consider a simplified hospital with 5 units, 2 are non-revenue generating (A and B) and 3 are revenue generating (C, D, and E). Service allocation and pre-allocation costs for March are provided in the table below. Use the reciprocal allocation method to determine the direct and indirect costs for the revenue generating services. Source A B Pre-allocation costs A B D E 0% 15% 20% 20% 45% 20% 0% 20% 30% 30% $50,000 $60,000 $200,000 $300,000 $350000 For problem 4, consider unit C, which performs 4 procedures (P1 to P4). Given the information below for March, use the full costing method to determine to direct, indirect, and total cost for each procedure. Procedure Patient Volume Equipment time (min) per procedure P1 P2 P3 P4 400 500 100 200 Direct Cost ($/procedure) labor + materials/supplies 100 150 500 300 10 40 30 30 4. Consider a simplified hospital with 5 units, 2 are non-revenue generating (A and B) and 3 are revenue generating (C, D, and E). Service allocation and pre-allocation costs for March are provided in the table below. Use the reciprocal allocation method to determine the direct and indirect costs for the revenue generating services. Source A B Pre-allocation costs A B D E 0% 15% 20% 20% 45% 20% 0% 20% 30% 30% $50,000 $60,000 $200,000 $300,000 $350000 For problem 4, consider unit C, which performs 4 procedures (P1 to P4). Given the information below for March, use the full costing method to determine to direct, indirect, and total cost for each procedure. Procedure Patient Volume Equipment time (min) per procedure P1 P2 P3 P4 400 500 100 200 Direct Cost ($/procedure) labor + materials/supplies 100 150 500 300 10 40 30 30

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