Question
The Safe Clinic computes a cost of treating each patient. It allocates costs to departments and then applies departmental overhead costs to individual patients using
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The Safe Clinic computes a cost of treating each patient. It allocates costs to departments and then applies departmental overhead costs to individual patients using a different budgeted overhead rate in each department. The following are budgeted for both departments in Safe Clinic for 2010: -
Pharmacy Medical Records
Department overhead cost RM225,000 RM300,000
No. of prescriptions filled (pharmacy) 80,000 -
No. of patients visited (medical records) - 55,000
In June 2010, David Lim paid 2 visits to the clinic and had 4 prescriptions filled at the pharmacy.
1. Compute the budgeted departmental overhead rates for both departments.
A.
RM2.81 per prescription, RM5.45 per patient visit B.
RM5.45 per prescription, RM5.45 per patient visit C.
RM5.45 per prescription, RM2.81 per patient visit D.
None of the above
The Safe Clinic computes a cost of treating each patient. It allocates costs to departments and then applies departmental overhead costs to individual patients using a different budgeted overhead rate in each department. The following are budgeted for both departments in Safe Clinic for 2010: -
Pharmacy Medical Records
Department overhead cost RM225,000 RM300,000
No. of prescriptions filled (pharmacy) 80,000 -
No. of patients visited (medical records) - 55,000
In June 2010, David Lim paid 2 visits to the clinic and had 4 prescriptions filled at the pharmacy.
1. Compute the budgeted departmental overhead rates for both departments.
A.
RM2.81 per prescription, RM5.45 per patient visitB.
RM5.45 per prescription, RM5.45 per patient visitC.
RM5.45 per prescription, RM2.81 per patient visitD.
None of the above
2. Compute the total budgeted overhead cost applied to the patient, David Lim in June 2010.
A.
RM22.14
B.
RM27.42
C.
RM24
D.
None of the above
3. If actual department overhead costs is as budgeted, and actual number of prescriptions filled by the pharmacy and number of patients who visited the clinic during 2010 were 85,000 and 63,000 respectively, compute the over / under absorbed overhead in each department.
A.
Overabsorbed: Pharmacy RM13,850; overabsorbed: Medical Records RM43,350
B.
Underabsorbed: Pharmacy RM13,850; overabsorbed: Medical Records RM43,350
C.
Underabsorbed: Pharmacy RM13,800; Underabsorbed: Medical Records RM43,380
D.
None of the above
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Matching Supply with Demand An Introduction to Operations Management
Authors: Gerard Cachon, Christian Terwiesch
3rd edition
73525200, 978-0073525204
