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Lab Test Company does various types of diagnostic health tests using sophisticated equipment. Management wants to compute the costs of performing tests for two different
Lab Test Company does various types of diagnostic health tests using sophisticated equipment. Management wants to compute the costs of performing tests for two different types of patients; those who are hospitalized and those who are not hospitalized but are referred by physicians. The data for June for the two categories of patients are: The accountant first assigns overhead costs to two pools; overhead related to equipment hours and overhead related to labor hours as follows: Compute the POHRs for each allocation base. Compute the total cost of production for June and the cost per procedure for each of the two types of patients
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