DBC, TDABC, and ABC The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two activities use four resources: nursing, medical technicians, cardiologists, and equipment. Detailed interviews have provided the following work distribution matrix shown below. Resources Activity Nursing Technicians Cardiologists Equipment Total Activity Time Diagnosing patients 0.70 0.80 0.40 0.60 12,000 hrs. Treating patients 0.30 Total time (hrs.) 0.20 0.60 0.40 8,000 hrs. 4,000 4,000 6,000 6,000 20,000 Cost $80,000 $80,000 $320,000 $320,000 The total time estimated corresponds to practical capacity (interviewers adjusted the total time to about 80 percent of the available time). The equipment time is measured in machine hours. Thus, the total time (at practical capacity) in the system is 20,000 hours. In considering the implementation of a TDABC model, the following unit times and transaction information are also provided: Unit Time Diagnosing patients 3 hrs Treating patients 0.8 hr. Driver Expected Activity Driver Quantity No. of patients 4,000 No. of treatments 10,000 The clinic has identified three types of patients: those with no heart disease, those with mild heart disease, and those with severe heart disease. The following additional data are provided: Average Time Spent Servicing Diagnosing Patients Treating Patients Each Patlent Type (Cycle Time) Patient Type No disease Mild disease 2,000 0 3 hrs. 1,500 5,000 5.6 hrs. Severe disease 500 5,000 11.0 hrs. ? Activity cost ? Required: Required: 1. Calculate the activity costs for diagnosing and treating patients. Using the activity costs calculated, calculate the unit cost of servicing each type of patient using traditional ABC. Activity rates Diagnosing Sfill in the blank 1 Treating Sfill in the blank 2 Calculate the unit cost of servicing each type of patient using traditional ABC. Unit Cost No Disease $fill in the blank 3 Mild $fill in the blank 4 Severe $fill in the blank 5

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Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency i clinics. Required: For each of the following costs incurred at Northwest Hospital, indicate whether it would most likely be a of the specified cost object. Cost Cost Object Direct Cost or Indirect Cost Example: Catered food served to patients A particular patient Direct Cost 1. The wages of pediatric nurses The pediatric department 2. Prescription drugs 3. Heating the hospital A particular patient The pediatric department The pediatric department A particular pediatric patient 4. The salary of the head of pediatrics 5. The salary of the head of pediatrics 6. Hospital chaplain's salary A particular patient A particular patient A particular department 7. Lab tests by outside contractor 8. Lab tests by outside contractor

Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics.Required:For each cost incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object by placing an X in the appropriate column.

Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients: Patient Category Driver Normal Intensive Activity Rate Treating patients Treatments 7,400 10,000 $4.00 Providing hygienic care Hygienic hours 4,800 18,100 5.00 Responding to requests Requests 32,000 80,000 2.00 Monitoring patients Monitoring hours 6,000 72,000 3.00 Required: 1. Determine the total nursing costs assigned to each patient category. Costs Assigned Normal Intensive 2. Output is measured in patient days. Assuming that the normal patient category uses 8,000 patient days and the intensive patient category uses 6,400 patient days, calculate the nursing cost per patient day for each type of patient. Round your answers to the nearest cent. Normal per patient day Intensive $4 per patient day 3. Conceptual Connection: The supervisor of the surgical ward has suggested that patient days is the only driver needed to assign nursing costs to each type of patient.…

Technology (IT), and two operating departments, Family Medicine and Pediatrics. Data concerning those departments follow: Service Departments Operating Department Family Information Personnel Technology $ 45,995 Medicine Pediatrics $ 86,184 $ 608,130 $ 316,290 Departmental costs Employees 18 26 128 188 Personnel costs 19 26 125 156 Personnel costs are allocated first on the basis of employees and Information Technology costs are allocated second on the basis of Personnel costs. The total Pediatrics Department cost after allocations is closest to: Multiple Choice $345,462 $393,099 $392,838 $383,307

Which of the following activity bases would be the most appropriate for food costs of a hospital? a.quantity of prescriptions filled b.how many MRI's are taken c.number of nurses scheduled to work d.number of patients who stay in the hospital

Assume that the hospital uses the direct method for cost allocation Question: how to solve question a & b ?

partial list of Foothills Medical Center’s costs follows:a. Cost of laundry services for operating room personnelb. Salary of intensive care personnelc. Depreciation on patient roomsd. Cost of blood testse. Nurses’ salariesf. Cost of patient mealsg. Overtime incurred in the Patient Records Department due to a computerfailureh. Operating room supplies used on patients (catheters, sutures, etc.)i. Doctor’s feej. Cost of X-ray testk. Cost of maintaining the staff and visitors’ cafeterial. Cost of drugs used for patientsm. Cost of intravenous solutions used for patientsn. Cost of improvements on the employee parking loto. Salary of the nutritionistp. General maintenance of the hospitalq. Cost of advertising hospital services on televisionr. Cost of new heart wings. Training costs for nursest. Depreciation of X-ray equipmentu. Utility costs of the hospital Instructions1. What would be Foothills Medical Center’s most logical definition for the final cost object? Explain.2. Identify whether…

Solomon Information Services, Incorporated, has two service departments: human resources and billing. Solomon's operating departments, organized according to the special Industry each department serves, are health care, retall, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Number of employees Annual cost Annual revenue Req A1 Human Resources Department Reg A2 Billing Health Care Retail Legal Services Total *This is the operating cost before allocating service department costs. Allocation Rate 20 Req B1 $ 900,000 Complete this question by entering your answers in the tabs below. x X Billing Required a. Allocate service department costs to operating departments, assuming that Solomon adopts the step method. The company uses the number of employees as the base for allocating human resources department costs and…