Activity based costing, Cost Accounting

Assignment Help:

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.


Related Discussions:- Activity based costing

Absorption, Under which inventory costing method could increases or decreas...

Under which inventory costing method could increases or decreases in income from operations be misinterpreted to be the result of operating efficiencies or inefficiencies?

Uses of funds, Dividends                                                   ...

Dividends                                                                                        ................ Non-operating losses not passed through P and L A/c

Cost accounting, Cost Accounting Cost accounting has been defined via ...

Cost Accounting Cost accounting has been defined via many accounting scholars in different forums. There is no single watertight definition of cost accounting, however the var

What is the gain or loss on the sale, a machine is purchased on july 1 2009...

a machine is purchased on july 1 2009 for $181,500. It has an expected useful life of 11 years and no salvage value. After five years, the machine is sold for $98,000 cash. What is

Evaluate the relevant cost, Question PART A A company manufactur...

Question PART A A company manufactures a single product and the data concerning the product is as follows: - Sales price of $10 - Marginal cost of $6. - Fixed

Contract accounts - contract costing, Contract Accounts It is a separa...

Contract Accounts It is a separate account such is maintained and opened for every contract undertaken for the reasons of accumulating cots.  Every contract is given a number

Inventory systems, Find a journal article online about just-in-time invento...

Find a journal article online about just-in-time inventory systems. In the subject line of your post, include the title of the article that you read. Post a link to that article wi

Calculate cost or equivalent units, Calculate Cost or Equivalent Units ...

Calculate Cost or Equivalent Units The given work in progress account concerns to the blending department of a company, a soft-drinks company for the month of January in 1999

Materials transaction, Materials Transaction i. Purchase of Materials ...

Materials Transaction i. Purchase of Materials on Credit ii. Return of Materials to Suppliers iii. Purchase of Materials in Cash. The above transactions affect both t

Machining costing, what are the factor for setting costing for a certain ma...

what are the factor for setting costing for a certain machining job

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd