Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

you can buy, keep your CULLUIT IUI. I DIVUyit my UWII. Data Table - X. A Requirements - X One item that caught Meltzer's attention

image text in transcribedimage text in transcribedimage text in transcribed

you can buy, keep your CULLUIT IUI. I DIVUyit my UWII. Data Table - X. A Requirements - X One item that caught Meltzer's attention was an $11.75 charge for a roll of cotton. Meltzer is a salesman for Johnson & Johnson and knows that the cost to the hospital of the roll of cotton is between $2.15 to $2.95. He asked for a breakdown of the $11.75 charge. The accounting office of the hospital sent him the following information: a. Invoiced cost of cotton roll $ 2.35 b. Cost of processing paperwork for purchase Compute the overhead rate Sierra University Hospital charged on the cotton roll. What criteria might Sierra use to justify allocation of the overhead items b-i in the preceding list? Examine each item separately and match it to the appropriate criteria. What should Meltzer do about the $11.75 charge for the cotton roll? 3. Print Done 1.65 c. Supplies-room management fee Operating-room and patient-room handling d. costs e. Administrative hospital costs f. University teaching-related costs g. Malpractice insurance costs h. Cost of treating uninsured patients 0.66 2.86 i. Profit component 0.59 $ 11.75 Total Print Done Dave Meltzer vacationed at Lake Tahoe last winter. Unfortunately, he broke his ankle while skiing and spent two days at the Sierra University Hospital. Meltzer's insurance company received a $4,500 bill for his two-day stay. (Click the icon to view the cost data.) Meltzer believes the overhead charge is outrageous. He comments, "There was nothing I could do about it. When they come in and dab your stitches, it's not as if you can say, 'Keep your cotton roll. I brought my own."" Read the requirements. Requirement 1. Compute the overhead rate Sierra University Hospital charged on the cotton roll. Begin by determining the formula, then calculate the overhead rate. (Enter the percentage as a whole number.) Overhead rate Requirement 2. What criteria might Sierra use to justify allocation of the overhead items b-i in the preceding list? Examine each item separately and match it to the appropriate criteria. (Complete all answer boxes.) Allocation criteria Cost of processing paperwork for purchase Supplies-room management fee Operating-room and patient-room handling costs Administrative hospital costs University teaching-related costs Malpractice insurance costs Cost of treating uninsured patients Profit component Requirement 3. What should Meltzer do about the $11.75 charge for the cotton roll? Individual patients have power in the medical arena. The insurance companies have power and decide Meltzer can that certain costs are not reimbursable. Choose from any list or enter any number in the input fields and then continue to the next

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

An Environmental Audit Primer Student Guide

Authors: Velsoft Training Materials, Inc.

1st Edition

1774550393, 978-1774550397

More Books

Students also viewed these Accounting questions

Question

Explain the typical sequence of events that lead to botulism.

Answered: 1 week ago