+1-415-670-9189
info@expertsmind.com
Shirtz community hospital has decided to estimate costs by
Course:- Accounting Basics
Reference No.:- EM13601502




Assignment Help
Assignment Help >> Accounting Basics

Shirtz Community Hospital has been under increasing pressure to be accountable for its patient charges. The hospital's current pricing system is ad hoc, based on pricing norms for the geographical area; only direct costs for surgery, medication, and other treatments are explicitly considered. The hospital's controller has suggested that the hospital improve pricing policies by seeking a tighter relationship between costs and pricing. This approach would make prices for services less arbitrary. As a first step, the controller has determined that most costs can be assigned to one of three cost pools. The three cost pools follow along with the estimated amounts and activity drivers.

The hospital provides service in three broad categories. The services follow with their volume measures for the activity centers.
a. What bases might be used as cost drivers to allocate the service center costs among the patients served by the hospital? Defend your selections.
The input in the box below will not be graded, but may be reviewed and considered by your instructor.

b. The hospital currently charges an "add-on" rate calculated using professional hours to patients' direct charges. What rate is Shirtz Community Hospital charging per hour? Round to the nearest dollar.
$ per professional hour
c. Determine the allocation rates for each activity center cost pool.

Professional salaries $ per hr.
Building costs $ per sq. ft.
Risk management $ per patient

d. Allocate the activity center costs to the three services provided by the hospital.

Surgery $
Housing $
Outpatient care $

e. Shirtz Community Hospital has decided to estimate costs by activity center using professional hours. What is the cost per professional hour of each activity center? Round to the nearest dollar.

Surgery $ per professional hour
Housing $ per professional hour
Outpatient care $ per professional hour




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Based on these data, prepare a multi step income statement for internal reporting purposes (showing all appropriate subtotals and totals). What was the amount of gross profit?
Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2012 consolidated financial sta
So, unlike much of the nation, the fear here is deflation-when prices sink so low the CPI drops below zero." Do you agree with the reporter's definition of deflation? Briefl
Tennison Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for May appear below: In addition, common fixed expens
Notes Receivable with Realistic Interest Rate On October 1, 2010, Arden Farm Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash p
Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO.
Perfect Auto Rentals sold one of its cars on January 1, 2013. Perfect had acquired the car on January 1, 2011, for $23,400. At acquisition Perfect assumed that the car would
Give the required journal entries for the two events in December. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance she