Output/Input Budget Vinyard Clinic has the following resource input information available for a routine physical examination. Each exam normally requires 0.75 hours of examining room time, including 30 minutes of nursing services, 15 minutes of physician services • Each examalso utilizes one package of examination supplies costing $50 each. Including benefits, physicians earn $90/hour and nurses earn $35/hour. Variable overhead is budgeted at $15 per examining room hour and fixed overhead is budgeted at $8,000 per month. Required Preparean output/input budget for October when 500 routine examinations are planned. Discuss some of the likely benefits to Vinyard Clinic of dedicating time to go through the budgeting process. VINYARD CLINIC Output/Input Budget For the Month of October Examining suppliesLabor: Nursing services Physician services Variable overhead Fixed overhead Total budget

Step 1:Step 1: Calculate Labor CostsCalculate the cost for nursing and physician services based on…

Answered: Output/Input Budget Vinyard Clinic has…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 2MAD

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Grinzaid Home Nursing specializes in home nursing services. It bases its overhead on the flexible budget cost function of $33,000 + ($2.40 x labor hours). Normal volume is based on 12,000 labor hours. Standards call for 2 labor hours per patient visited.For the current period, the operating results were as follows: actual labor hours worked 11,400, patient visits 5,800, actual variable overhead costs $28,460, actual fixed overhead costs $31,950. How much of the budget variance is due to variable costs?
The pharmacy in a busy hospital uses pre-determined rates for absorbing total overheads, based on the budgeted number of prescriptions to be handled. A rate of $7 per prescription has been calculated, and the following overhead expenditures have been estimated at two activity levels. Total overheads Number of prescriptions $ 97,000 13,000 109,000 16,000 During a particular period fixed overheads were $45,000. Based on the data above, what was the budgeted level of activity in prescriptions to be handled during the period in question? A 13,000 B 15,000 C 16,000 D 33,333
Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: Budgeted number of patient-visits Budgeted variable overhead costs: Supplies (@$6.00 per patient-visit) Laundry (@$9.00 per patient-visit) Total variable overhead cost Budgeted fixed overhead costs: Wages and salaries Occupancy costs Total fixed overhead cost. Total budgeted overhead cost Multiple Choice The total overhead cost at an activity level of 8,400 patient-visits per month should be: O $280,800 $270,300 $267,900 7,700 $ 46,200 69,300 115,500 $257,400 54,900 87,000 141,900 $ 257,400
The Safe Clinic computes a cost of treating each patient. It allocates costs to departments and then applies departmental overhead costs to individual patients using a different budgeted overhead rate in each department. The following are budgeted for both departments in Safe Clinic for 2010: - Pharmacy Medical Records Department overhead cost RM225,000 RM300,000 No. of prescriptions filled (pharmacy) 80,000 - No. of patients visited (medical records) - 55,000 In June 2010, David Lim paid 2 visits to the clinic and had 4 prescriptions filled at the pharmacy. 1) Compute the budgeted departmental overhead rates for both departments. 2) Compute the total budgeted overhead cost applied to the patient, David Lim in June…
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 2,200 machine-hours Variable overhead costs: Supplies Indirect labor Fixed overhead costs: Supervision Utilities Depreciation Total overhead cost Multiple Choice The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,100 machine-hours rather than 2,200 machine-hours? (Round your intermediate calculations to 2 decimal places.) O $54,560 $53,330 $52,770 $ 9,240 17,820 $52,080 15,300 5,600 6,600 $ 54,560
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,100 machine-hours Variable overhead costs: Supplies $15,810 Indirect labor 27,900 Fixed overhead costs: Supervision 17,000 Utilities 6,500 Depreciation 7,500 Total overhead cost $74,710 The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 3,000 machine-hours rather than 3,100 machine-hours? Multiple Choice $72,650 $72,300 $73,300 $74,710
Mellow Clinic bases its budgets on patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgetir Variable element per Fixed element per month patient-visit $60.00 Revenues Personnel expenses Medical supplies $24,000 $6.60 $2.40 $6,000 $5,000 Occupancy expenses Administrative expenses The behaviour of the revenue and expenses is valid for between 1,500 and 4,000 patient-visits per month. Required: ) Prepare a flexible budget for 2,000 and 3,000 patient-visits in a month. (14 marks) You may not need to use all the cells. Patient -visits 10 The behaviour of the revenue and expenses is valid for between 1.500 and 4,.000 patient-visits per month 11 12 Required: 13 a) Prepare a flexible budget for 2,000 and 3,000 patient-visits in a month. (14 marks) You may not need to use all the cells. 14 is Patient -visits Variable element per month 2,000 3,000 Revenues Less: variable expenses Medical supplies Occupancy expenses Total variable expenses…
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,200 machine-hours Variable overhead costs: Supplies $16,640 Indirect labor 29,120 Fixed overhead costs: Supervision 15,400 Utilities 6,600 Depreciation 7,600 Total overhead cost $75,360 The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 3,100 machine-hours rather than 3,200 machine-hours?
Use the Information below to answer the two questions that follow. A company provides delivery services and uses two activity measures for its costs: the miles driven and the number of customer order. For the most recent month, the company reported the following information: Actual $ 12,940 $ 22 per mile $ 13 per order Budgeted Fixed cost per month Varlable cost per mile Varlable cost per order $ 26 $ 12 Miles driven Customer orders Budgeted 74 480 Actual 64miles 460 orders Spending Varlance for total costs $203 Unfavorable Q. What was the company's budgeted fixed cost per month? ANS. S Q. What was the company's activity variance for the month? ANS. $ (Click to select) v
Capelli Hospital bases its budgets on patient-visits. The hospital's static budget for August appears below: Budgeted number of patient-visits Budgeted variable costs: Supplies (@$8.70 per patient-visit) Laundry (@$8.40 per patient-visit) Total variable cost Budgeted fixed costs: Wages and salaries Occupancy costs Total fixed cost Total cost Multiple Choice The total variable cost at the activity level of 8,700 patient-visits per month should be: $148,770 O $147,060 $209,650 8,600 $ 74,820 72,240 147,060 $207,320 99,660 107,660 207,320 $ 354,380
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level Variable overhead costs: 3,100 machine-hours Supplies Indirect labor Fixed overhead costs: $15,810 27,900 17,000 Supervision Utilities 6,500 Depreciation 7,500 Total overhead cost $74,710 The company's varlable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month If the activity level Is 3,000 machine-hours rather than 3,100 machine-hours? Multiple Choice S73.300 $72,300 $72,650 $74.710
Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Budgeted Cost $ 147,000 145,200 Allocation Base Machine hours (MH) Direct labor hours (DLH) Budgeted Usage 9,800 MH 3,300 DLH Required: 1. Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. 2. The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Voltage 2.0 MH 2.0 DLH EasyRider 4.0 MH 0.5 DLH 3. The company reports additional information below. For each model, compute the product cost per unit. Machine hours per unit Direct labor hours per unit Selling Price $ 290 195 Per Unit Voltage EasyRider Direct Materials $ 108 98 4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit). Direct Labor $ 47 20 Complete this question by entering your answers…

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