Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Unit Cost, No Work-In-Process Inventories Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had the following cost

Unit Cost, No Work-In-Process Inventories

Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had the following cost and output information:

Direct materials $800
Hygienist's salary $4,500
Overhead $7,000
Number of treatments 100

Required:

1. Calculate the cost per treatment for April. $ per treatment

2. Calculate the cost of services sold for April. $

3. What if Lising found a way to reduce overhead costs by 30 percent? How would this affect the profit per treatment? Profit would be - Select your answer -increaseddecreasedItem 3

by $ per treatment

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

Operational Guidelines For Postmortem Examinations And Auditing

Authors: O.P. Murty, O.P Murty

1st Edition

8123924437, 978-8123924434

More Books

Students also viewed these Accounting questions