Activity based costing, Cost Accounting

As controller for Edmonton Cosmetic Hospital, you are looking into the possibility of utilizing Activity- Based-Costing to assign overhead costs to patient surgeries. As a first step, you have determined that overhead costs can be assigned to one of the following three activities:  

314_Activity- Based-Costing.png

Hospital services are classified into several broad categories, two of which are In-Patient Care and Out- Patient Care. The volume measures for In-Patient and Out-Patient Care are as follows:

622_Activity- Based-Costing 2.png

(A)  Under a traditional overhead allocation method 

i. What would be the Predetermined Overhead Rate based on direct labour hours. 

ii. What would be the allocation of overhead for In-Patient care and Out-patient care.

Show calculations 

(B)  Under ABC Costing

i. What is the allocation rate for each activity (Professional salaries, Building costs, and Risk management?

ii. What is the total allocation overhead for In-patient care and Outpatient care? Show calculations.

Posted Date: 2/19/2013 1:14:45 AM | Location : United States







Related Discussions:- Activity based costing, Assignment Help, Ask Question on Activity based costing, Get Answer, Expert's Help, Activity based costing Discussions

Write discussion on Activity based costing
Your posts are moderated
Related Questions
The assets and liabilities of Amos Moving Services at May 31, 2011, the end of the current year, and its revenue and expenses for the year are listed below.  On April 1, 2010, the

Describe the information about cost sheets? Ans) Cost sheet having of the direct and indirect expenses acquired in producing a given product and classifying the expenses acquire


#what is the formula for calculating payback period and what are its limitations ?

Material Costs - Cost Accumulation However 'Materials' refer to the tangible inputs into the procedure of producing useful output.  They might be indirect materials or direct

Example of LIFO, FIFO and Weighted Average Method Suppose the following purchases were made in ABC Ltd as like: Date of purchase     Units purchased              Price/uni

Analysis of stockholders equity: Star Corporation issued both common and preferred stock during 19X6. The stockholders' equity sections of the company's balance sheets at the

Peter Coffin and Paul Bearer own The Grave Undertaking, Inc. and their firm uses a predetermined overhead rate to apply overhead to the production of custom-built coffins.  They us

Uniform Costing It is a general system utilizing agreed concepts, standard and principles accounting practices adopted via different entities in the similar industry to ensure

What do you mean by differential costing ? How it differ from marginal costing ? explain its practical application with examples?