Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Time-Driven Activity-Based Costing Compared to ABC: Stage 1 The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two activities use four

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Time-Driven Activity-Based Costing Compared to ABC: Stage 1 The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two activities use four resources: nursing, medical technicians, cardiologists, and equipment Detailed interviews have provided the following work distribution matrix shown below, Resources Total Activity Activity Nursing Technicians Cardiologists Equipment Time Diagnosing patients 0.70 0.80 0.40 0.60 12,000 hrs. Treating patients 0.30 0.20 0.00 0.40 8,000 hrs. Total time (hrs.). 4,000 4,000 6,000 6,000 20,000 Cost $80,000 $80,000 $320,000 $320,000 The total time estimated corresponds to practical capacity (interviewers adjusted the total time to about 80 percent of the available time). The equipment time is measured in machine hours. Thus, the total time (at practical capacity) in the system is 20,000 hours. In considering the implementation of a TDABC model, the following unit times and transaction information are also provided: Diagnosing patients Treating patients Required: Unit Time Driver Expected Activity Driver Quantity 3 hrs No. of patients 4,000 0.8 hr No. of treatments 10,000

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 Information Systems The Processes and Controls

Authors: Leslie Turner, Andrea Weickgenannt

2nd edition

9781118473030, 1118162307, 1118473035, 978-1118162309

More Books

Students also viewed these Accounting questions

Question

In a system with light damping (c Answered: 1 week ago

Answered: 1 week ago

Question

C2.9. Why are dividends notan expense in the income statement?

Answered: 1 week ago