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Patient Health is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 50%. As

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Patient Health is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 50%. As a result, the clinic wants to better understand its costs. It decides to prepare an activity-based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic's three cost centers and their cost drivers follow. cout Center Professional salarios Patient services and supplies Building coat Cont Cont Driver $2,090,000 Professional hours 26,000 umber of patients 341,000 square feet Driver Quantity 11,000 400 3.100 + The two main surgical units and their related data follow. Service Hours Square feet Patients General surgery 3,600 810 300 Orthopedic surgery 7.400 2,290 100 *Orthopedic surgery requires more space for patients, supplies, and equipment Required: Complete the below table Activity Rate Compute the cost per cont driver for each of the three cost centers Activity Overhead Cost Activity Drivers Professional salaries Patient services and supplies Building cost 2. Use the results from part 1 to allocate costs from each of the three cont centers to both the general surgery and the orthopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units. General surgery Activity driver Activity rate. incurred Overhead assigned Professional salarios Patient services and supplies Building con Singh and Smythe is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period. (Round activity rate answers to 2 decimal places.) Activities coste Design department client consultation 1,100 contact hours $176,000 Dinge 2,200 design hours 121,000 Modeling 50,000 square feet 42,500 Project Management department Supervision 1.000 days $220,000 Billing 7 Jobs 9,300 Collection 7 Jobs 10,300 1. Using ABC, compute the firm's activity overhead rates, Form activity cost pools where appropriate Activity Expected Costs Expected Activity Driver Activity Rato Client consultation per contact hour Drawings per design hour Modeling per square foot Supervision per day Billing Collections por job 2. Assign costs to a 0,000-square-footjob that requires 500 contact hours, 350 design hours, and 100 days to complete Activity rate- Activity driver incurred Overhead assigned Client consultation Drawings Modeling Supervision Billing Collections Chan Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: fast and standard Activity Expected Conto Activity Driver Handling materials $ 640,000 160,000 parta Inspecting product 1,101,000 1,835 batchen Processing purchase ordeta 135,000 1,000 orders Paying suppliers 205,000 500 invoices Insuring the factory 360,000 48,000 square feet Donigning packaging 81,000 2 models Compute the overhead activity rate for each activity, assuming the company uses activity-based costing. (Round your answers to 2 decimal places.) Activity Rate Activity Handling materials Inspecting product Processing purchase orders Paying supplem Insuring the factory Designing packaging Expected Costa $ 640,000 1.101,000 135,000 205,000 360,000 81,000 $ 2,522,000 Activity Driver 160,000 parts 1,835 batches 1,000 orders 500 invoices 48,000 square feet 2 models Chan Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: fast and standard Activity Handling materials Inspecting product Processing purchase ordet Paying suppliers Insuring the factory Designing packaging Expected Costa + 646,000 1,188,000 150,000 210.000 370,000 82,000 Activity Driver 170,000 parts 1,485 batches 1,000 orders 600 invoices 50,000 square feet 2 modela 1. Compute a single plantwide overhead rate assuming that the company assigns overhead based on 135,000 budgeted direct labor hours 2. In January of this year, the fast model required 3.000 direct labor hours and the standard model required 9,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute a single plantwide overhead rate assuming that the company assigns overhead based on 135,000 budgeted direct labor hours Estimated overhead costs Estimated direct labor hours Hamar Required 2 > Chan Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: fast and standard Activity Bandling materiale Inspecting product Processing purchase ordeca Paying suppliers Ineuring the factory Designing packaging Expected Conte $646.000 1,100,000 150.000 210.000 370,000 02.000 Activity Driver 170,000 parta 1,405 batches 1,000 orders 600 invoices 50,000 square feet 2 models 1. Computer a single plantwide overhead rate assuming that the company assigns overhead based on 135,000 budgeted direct labor hours 2. In January of this year, the fast model required 3,000 direct labor hours and the standard model required 9,000 direct labor hours, Assign overhead costs to each model using the single plantwide overhead rate. Complete this question by entering your answers in the tabs below. ces Required: Required 2 In January of this year, the fast model required 3,000 direct labor hours and the standard model required 9,000 direct labor hours, Assign overhead costs to each model using the single plantwide overhead rate. (Round OH rate to 2 decimal places.) Total DL. Hours Plantwide OH Total Overhead requird Rate Cost Fast model Standard model Required 1 Red

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