Question
The radiology department of metro-north hospital take 37,000 x-rays each year. the X-rays are taken as part of the treatment protocols for patients from three
The radiology department of metro-north hospital take 37,000 x-rays each year. the X-rays are taken as part of the treatment protocols for patients from three revenue departmen: 2000 cardiology patients who require an average of 8 xrays each; 4500 orthopedic patients who each get an average of 4 rays taken during the course of their treatment; and 1000 oncology patients whohave three x rays taken for cardiology patients require the use of portable equipment while 10% of the orthdopedic patient x rays and 15% of the oncology patients x rays use the portable equipment. On average, the number of x rays that have to be taken does not vary between patients that use the stationary x ray machines in the radiology laboratory and x rays taken using the portable equipment.
X ray film cost $15 per exposure and developing chemcals cost $2.00 per image. Annual salaries are $30,000 per year for each of the six technicans who operate the stationary x ray machine and 35,000 for each of the eigh technicians who operate the portable x ray equipment. R
Radiology has fixed overhead costs of $100,000 per year and spends $15,000 per year to maintain the summary x ray machnes and $25,000 to maintain the portable units.
a. Using process costing, what is the cost per x ray?
b. Using job ordering costing, what is the cost per x ray for the patients who have x rays taken in the laboratory and those whose x rays are taken using the portable equipment?
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