Reference no: EM13835147
Assume that the hospital uses salary dollars as the cost driver for General Administration, housekeeping labor hours as the cost driver for Facilities, and patient services revenue as the cost driver for Financial Services. (The majority of the costs of the Facilities Department are devoted to housekeeping services.)
a. What are the appropriate allocation rates?
b. Allocate the hospital's overhead costs to the patient services departments.
c. Compare the dollar allocations with those obtained in Problem 4.6.
(What are the appropriate allocation rates? 200,000 /5,000,000 = 0.40
b. Allocate the hospital's overhead costs to the patient services departments. 3,000,000/5,000,00 = 0.60)
Explain the differences.
d. Which of the two cost driver schemes is better? Explain your answer.
Now assume that $2 million of Financial Services costs are related to billing and managerial reporting and $1 million are related to payroll and personnel management activities.
a. Devise and implement a cost allocation scheme that recognizes that Financial Services has two widely different functions.
b. What, if any, additional information would be useful in completing Part a?
c. What are the costs and bene?ts to St. Benedict's of creating two cost pools for financial services
|
Average real return
: c.What was the average real return for Treasury bills over this period? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Average real return ..
|
|
Find the area of the field in square feet
: Manuel's coach wants him to find the area of the field in square feet so that he can include other activities within the rectangle.
|
|
Do you obtain a good representation of the pareto frontier
: Generate the Pareto frontier using the weighted sum method. Do you obtain a good representation of the Pareto frontier? Explain why or why not.
|
|
What is uare''s net income
: If UARE, Inc. has sales of 11,300, total assets of 12000, a debt to equity ratio of 1.3 and a return on equity of 15 percent, what is UARE's net income?
|
|
Assume that the hospital uses salary dollars
: Assume that the hospital uses salary dollars as the cost driver for General Administration, housekeeping labor hours as the cost driver for Facilities, and patient services revenue as the cost driver for Financial Services. (The majority of the costs..
|
|
Why and how has branding increased
: Why and how has branding increased in the last few decades
|
|
What value of the exponent gives an adequate representation
: Use the compromise programming method to obtain the Pareto frontier. What value of the exponent gives an adequate representation of the Pareto frontier?
|
|
Develop a potential thesis statement
: develop a potential thesis statement
|
|
A local finance company quotes
: A local finance company quotes a 15 percent interest rate on one-year loans. So, if you borrow $20,000, the interest for the year will be $3,000. Because you must repay a total of $23,000 in one year, the finance company requires you to pay $23,000/1..
|