Using the direct method of allocation assume an overhead department has $100, 000 in expenses, there are two revenue producing departments, Dept A and Dept B and costs are allocated based on number of patient visits. Dept A has 4, 000 visits and Dept B has 6, 000 visits. How much of the overhead department expense is allocated to Dept A? $20, 000 $40, 000 $60, 000 None of the above Assume you are starting a new service with the following relevant data What must your price per procedure be in order to make $10, 000 in profit? Variable cost per procedure - $15 Fixed Costs - $20, 000 Overhead Allocation - $5, 000 Expected procedure volume - 5, 000 $6 $7 $21 $22 Your clinic has fixed costs of $1, 000, 000, an average variable cost of $15 per visit, one correct with a HMO where you are paid on a capitates basis. Your contract pays you $15 per member per month and you have 12, 000 members. Each member comes into the clinic 2 times per year. Howe much money are you making (losing)? $2, 160, 000 $1, 160, 000 $800, 000 None of the above If you want to allocate the costs of a maintenance department which of the following would most likely the best cost ever