Question
You are provided the following information for the Emergency Department at Greenhills Hospital: Annual direct costs: $3,000,000 Annual indirect (overhead) costs: $1,500,000 Annual total costs:
You are provided the following information for the Emergency Department at Greenhills Hospital: Annual direct costs: $3,000,000 Annual indirect (overhead) costs: $1,500,000 Annual total costs: $4,500,000 Annual charges: $6,000,000 Assume that total charges for service X amount to $1,000,000. In addition, you learn that total direct costs for service X equal $600,000. What is the full (total) cost for service X?
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
2nd edition
978-0077403485, 77403487, 73527130, 978-0073527130
