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

Measuring performance in organization, list and discus the problem encounte...

list and discus the problem encountered in adopting profit as a yardstick in measuring performance

Meaning of budget, BUDGET A BUDGET is a quantitative expression of a ...

BUDGET A BUDGET is a quantitative expression of a business plan for a particular future period, generally a year. BUDGET is the planned future course of action. BUDGET

Which of the floowing is not capital budgeting decision, 1. when using the ...

1. when using the internal rate of return method to evaluate capital spending on a new project, the project will be accepted if the internal rate of return is equal to or greater t

Apportionment of overheads, Apportionment of Overheads Apportionment...

Apportionment of Overheads Apportionment of overheads occurs whereas the net value of an overhead item is shared among more or two cost centers that employ the overheads. Th

Determine the expected return, Imagine a world in which there are only two ...

Imagine a world in which there are only two investment assets: Hasbro Inc. Stock (HAS) and McDonalds stock (MCD). The table below lists annual total returns (%) for each of the las

Find the amount of retained earnings at december, From the information prov...

From the information provided, determine: 1.) The amount of retained earnings at December 31 and 2.) The amount of revenues for the period. Additional data:1.)Expenses for the peri

Master budget, What are the four elements of the budgeting cycle?

What are the four elements of the budgeting cycle?

Calculate the rate of learning of initial production phase, Calculate the r...

Calculate the rate of learning at which the initial production phase profit target would be achieved, assuming no other cost savings can be made.   Assuming no other cost savi

Recording Transactions, I have a project due this week and I am having slig...

I have a project due this week and I am having slight issues with the transactions. I cannot seem to receive the correct titles under the recordings

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