Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

OH allocation using cost drivers Regis Place is a health-care facility that has been allocating its overhead costs to patients based on number of patient

OH allocation using cost drivers Regis Place is a health-care facility that has been allocating its overhead costs to patients based on number of patient days. The facility's overhead costs total $4,706,520 per year and the facility (which operates monthly at capacity) has a total of 60 beds available. (Assume a 360-day year.) The facility's accountant is considering a new overhead allocation method using the following information: OH Cost Rooms (depreciation, cleaning, etc.) $655,200 # of rooms (25 double) Laundry Nursing care Physical therapy Cost Driver (Quantity) 35 196,560 # of beds 60 1,708,200 # of nurse-hours annually 43,800 1,248,000 # of hours of rehab 8,000 898,560 # of patient days ? General services Rooms are cleaned daily; laundry for rooms is done, on average, every other day. a. How many patient days are available at Regis Place? 0 days b. What is the current overhead rate per patient day? Note: Round your answer to the nearest whole dollar. $ 0 c. Using the individual cost drivers, what is the overhead rate for each type of cost? Note: Round your answers to the nearest whole dollar. Rooms: $ 0 Laundry: $ 0 Nursing care: 0 Physical therapy: $ 0 0 General services: $ d. Assume a patient stayed at Regis Place for six days. The patient was in a single room and required six hours of nursing care and 30 hours of physical therapy. 1. What overhead cost would be assigned to this patient under the current method of overhead allocation? Note: Round your answer to the nearest whole dollar. $ 0 2. What overhead cost would be assigned to this patient under the ABC method of overhead allocation? Note: Use the rounded rates from part (c) in your calculations. 2. What overhead cost would be assigned to this patient under the ABC method of overhead allocation? Note: Use the rounded rates from part (c) in your calculations. Rooms Laundry Nursing care Physical therapy General services Total $ 0 0 0 0 0 $ e. Assume a patient stayed at Regis Place for six days. The patient was in a double room and required six hours of nursing care but did not require any physical therapy. 1. What overhead cost would be assigned to this patient under the current method of overhead allocation? Note: Round your answer to the nearest whole dollar. $ 0 2. What overhead cost would be assigned to this patient under the ABC method of overhead allocation? Note: Use the rounded rates from part (c) in your calculations. Rooms Laundry Nursing care General services Total $ 0 0 0 0 $ 0

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

Accounting Basic For Beginners

Authors: Kavishankar Panchtilak

1st Edition

979-8860644588

More Books

Students also viewed these Accounting questions

Question

What steps are involved with agreeing to terms with a seller?

Answered: 1 week ago

Question

=+Is the humor funny?

Answered: 1 week ago