+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
Vernon Co. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxi
On August 1, Stuart Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the en
The customer fails to pay the bill within 30 days and a finance charge is added to the customer's account. What is the amount of the finance charge?
Draw up a list of all the expenses the business would incur and indicate the source of the information you would need to calculate the figures for the forecast cash outflows
A contract probably hasn't been formed because of what basic principle of contract law - Steve honestly believed that a contract had been formed, and he could sue Elliot and
Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 201
Show the amounts that will appear in the statement of financial position of Philippo Tist Corporation as at 31 December 20X0 in respect of the site and the amounts that will a
Ed Arnold started a personal financial planning business when he accepted $120,000 cash as advance payment for managing the financial assets of a large estate. Arnold agreed t