question 1: Northshore used activity- based cost to determine the cost associate with a GI procedure. Using this information summarize the total cost of department Using Supplementary Table 1.

Direct Material:

Direct labor:

Indirect material:

Indirect labor:

Indirect cost:

November 2011 21600&re... 90 PRACTICE MANAGEMENT: OPPORTUNITIES AND CHALLENGES 949.61 Supplementary Table 1. Cost Drivers Annual quantity of cost driver Annual cost Cost allocation rate Category Actual quantity of allocation base Allocated activity cost Cost driver Indirect labor Direct labor Direct labor $84,588 Number of patients $40,000 Minutes used $52.500 Minutos used 11,000 120,000 90,000 $7.69 $0.33 $0.58 1 30 20 $7.69 $10.00 $11.67 Direct labor Direct material Direct material Direct material Direct material $70,000 Minutes used $4730 Number of patients $55,000 Number of patients $3520 Number of patients $440,000 Number of patients 120,000 11,000 11,000 11,000 11,000 $0.58 $0.43 $5.00 $0.32 $40.00 30 1 1 1 1 $18.00 $0.43 $5.00 $0.32 $40.00 Component activity Referral and scheduling Scheduling pod Office secretary Patient education preprocedure Day of procedure processing Patient registration-RN IV Insertions IV tubing Nasal cannula ECG leads Procedure Nurse Technician Medication demeral Medications versed Medical malpractice Equipment depreciation Gi laboratory depreciation Laboratory supervisor Hospital overhead Ancillary equipment Recovery Food services Nurse Scope cleaning Technician Materials Overhead costs Billing Direct labor Direct labor Direct material Direct material Indirect cost Indirect cost Indirect cost Direct labor Indirect cost Indirect material $70,000 $33,000 $9350 $20.350 $259,816 $323,820 $323,820 $100,000 $650,524 $382,280 Minutes used Minutes used Number of patients Number of patients Number of patients Number of patients Number of patients Number of patients Number of patients Number of patients 120,000 120,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 $0.58 $0.28 $0.85 $1.85 $23.62 $29.44 $29.44 $9.09 $59.14 $34.75 45 30 1 1 1 1 1 1 1 1 $26.25 $8.25 $0.85 $1.85 $23.62 $29.44 $29.44 $9.09 $59.14 $34.75 Indirect labor Direct labor $130,808 $70,000 Number of patients Minutes used 11,000 120,000 $11.89 $0.58 1 10 $11.89 $5.83 Direct labor Indirect material $33.000 $13,146 Minutes used Number of patients 120,000 11,000 $0.28 $1.20 20 1 $5.50 $1.20 Indirect labor Number of patients 11.000 1 $200.504 $18.23 $18.23 ECG, lactantdiadam. Innocentistardim