Chapter 12 Homework

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University of Kentucky *

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Industrial Engineering

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Feb 20, 2024

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#11 A Sq Feet Utilities Direct Costs Admin # test Laboratory Utilities Administration 5,000 28% Laboratory 3,000 17% $ 850,000 15.7% Day-op Suite 5,000 28% $ 3,500,000 64.5% 7000 56% Cystoscopy 3,000 17% $ 675,000 12.4% 3000 24% Endoscopy 2,000 11% $ 400,000 7.4% 2500 20% Total 18000 100% $ 5,425,000 100.0% 12500 100% Utilities Admin Laboratory Dept Costs Utilities Admin Utilities $500,000 $ (500,000) Administration 28% $800,000 $ 138,889 $ 938,889 Laboratory 17% 15.7% $850,000 $ 83,333 $ 147,406 Day-op Suite 28% 64.5% 56% $3,500,000 $ 138,889 $ 605,583 Cystoscopy 17% 12.4% 24% $675,000 $ 83,333 $ 116,422 Endoscopy 11% 7.4% 20% $400,000 $ 55,556 $ 69,478 Total 100% 100.0% 100% $6,725,000 $ 500,000 $ 1,877,778
Lab Total $ 1,080,739 $ 2,161,478 $ 605,214 $ 4,849,686 $ 259,377 $ 1,134,133 $ 216,148 $ 741,181 $ 2,161,478 $ 8,886,478
#11 B Sq Feet Utilities Direct Costs Admin # test Laboratory Utilities Administration 4,500 25% Laboratory 3,000 17% $ 850,000 15.7% Day-op Suite 5,000 28% $ 3,500,000 64.5% 7000 56% Cystoscopy 3,500 19% $ 675,000 12.4% 3000 24% Endoscopy 2,000 11% $ 400,000 7.4% 2500 20% Total 18000 100% $ 5,425,000 100.0% 12500 100% Utilities Admin Laboratory Dept Costs Utilities Admin Lab Utilities $500,000 $ (500,000) Administration 25% $800,000 $ 125,000 $ 925,000 Laboratory 17% 15.7% $850,000 $ 83,333 $ 145,225 $ 1,078,558 Day-op Suite 28% 64.5% 56% $3,500,000 $ 138,889 $ 596,625 $ 603,993 Cystoscopy 19% 12.4% 24% $675,000 $ 97,222 $ 114,700 $ 258,854 Endoscopy 11% 7.4% 20% $400,000 $ 55,556 $ 68,450 $ 215,712 Total 100% 100.0% 100% $6,725,000 $ 500,000 $ 1,850,000 $ 2,157,117
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Total $ 2,157,117 $ 4,839,507 $ 1,145,776 $ 739,717 $ 8,882,117 Cost Decreased
#11 C Sq Feet Utilities Direct Costs Admin # test Laboratory Utilities Administration 5,000 27% Laboratory 3,000 16% $ 850,000 15.8% Day-op Suite 5,000 27% $ 3,500,000 65.1% 7000 56% Cystoscopy 3,250 18% $ 650,000 12.1% 3000 24% Endoscopy 2,250 12% $ 375,000 7.0% 2500 20% Total 18500 100% $ 5,375,000 100.0% 12500 100% Utilities Admin Laboratory Dept Costs Utilities Admin Lab Utilities $500,000 $ (500,000) Administration 27% $800,000 $ 135,135 $ 935,135 Laboratory 16% 15.7% $850,000 $ 81,081 $ 146,816 $ 1,077,897 Day-op Suite 27% 64.5% 56% $3,500,000 $ 135,135 $ 603,162 $ 603,622 Cystoscopy 18% 12.4% 24% $65,000 $ 87,838 $ 115,957 $ 258,695 Endoscopy 12% 7.4% 20% $375,000 $ 60,811 $ 69,200 $ 215,579 Total 100% 100.0% 100% $6,090,000 $ 500,000 $ 1,870,270 $ 2,155,795
Total $ 2,155,795 $ 4,841,920 $ 527,490 $ 720,590 $ 8,245,795 Cost decreased
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P1 A. $100,000 is the cost pool. B. Rate for Patient Service Revenue: 0.02 Rate for Hours of Housekeeping: 0.05 C. Revenue Revenue % Direct Cost Adult Services $3,000,000 60% $60,000 Pediatric Services $1,500,000 30% $30,000 Other Services $500,000 10% $10,000 Total $5,000,000 100% $100,000 D. Housekeeping hours Housekeep % Direct Cost Adult Services 1500 30% $30,000 Pediatric Services 3000 60% $60,000 Other Services 500 10% $10,000 Total 5000 100% $100,000 E. The hours of housekeeping are the better driver because it reflects the cost of the services of the department that used the most housekeeping hours. The Pediatric department uses the most hours so they should pay the most for the service.
P2 Square Feet Number of FTEs Direct Costs Patient Revenue Employee Relations 7000 50 $4,000,000 Maintenance 10000 75 $5,000,000 General Admission 8000 15 $4,000,000 Routine Care 500000 700 $18,000,000 $40,000,000 Other Services 200000 400 $8,000,000 $12,000,000 Intensive Care 45000 200 $6,000,000 $7,000,000 Obstetrics Services 35000 150 $4,000,000 $4,000,000 Total 805000 1590 $49,000,000 $63,000,000 Square Feet % FTE% Patient Revenue % Direct Costs Employee Relations 0.9% 3.1% $ 4,000,000 Maintenance 1.2% 4.7% $ 5,000,000 General Admission 1.0% 0.9% $ 4,000,000 Routine Care 62.1% 44.0% 63.5% $ 18,000,000 Other Services 24.8% 25.2% 19.0% $ 8,000,000 Intensive Care 5.6% 12.6% 11.1% $ 6,000,000 Obstetrics Services 4.3% 9.4% 6.3% $ 4,000,000 Total 100.0% 100.0% 100.0% $ 49,000,000
Employee Relations Maintenance General Admin Total $ (4,000,000) $ 188,679 $ 5,188,679 $ 37,736 $ 51,565 $ 4,089,300 $ 1,761,006 $ 3,222,782 $ 2,596,381 $ 25,580,170 $ 1,006,289 $ 1,289,113 $ 778,914 $ 11,074,317 $ 503,145 $ 290,050 $ 454,367 $ 7,247,562 $ 377,358 $ 225,595 $ 259,638 $ 4,862,591 $ (125,786) $ 10,267,784 $ 8,178,601 $ 48,764,639
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