LO.4 (OH allocation using cost drivers) Regis Place is a health-care facility that has been allocating its overhead costs to patients based on number of patient days. The facility's overhead costs total $3,620,400 per year and the facility (which operates monthly at capacity) has a total of 60 beds available. (Assume a 360-day year.) The facility's accountant is considering a new overhead allocation method using the follow- ing information: Cost Cost Driver Quantity Rooms (depreciation, cleaning, etc.) $ 504,000 H of rooms (25 double) 35 Laundry 151,200 # of beds 60 Nursing care 1,314,000 # of nurse-hours annually 43,800 Physical therapy 960,000 f of hours of rehab 8,000 General services 691,200 H of patient days Rooms are cleaned daily; laundry for rooms is done, on average, every other day. a. How many patient days are available at Regis Place? b. What is the overhead rate per patient day? (Round to the nearest dollar.) c. Using the individual cost drivers, what is the overhead rate for each type of cost? (Round to the nearest dollar.)

LO.4 (OH allocation using cost drivers) Regis Place is a health-care facility that has been allocating its overhead costs to patients based on number of patient days. The facility's overhead costs total $3,620,400 per year and the facility (which operates monthly at capacity) has a total of 60 beds available. (Assume a 360-day year.) The facility's accountant is considering a new overhead allocation method using the follow- ing information: Cost Cost Driver Quantity Rooms (depreciation, cleaning, etc.) $ 504,000 H of rooms (25 double) 35 Laundry 151,200 # of beds 60 Nursing care 1,314,000 # of nurse-hours annually 43,800 Physical therapy 960,000 f of hours of rehab 8,000 General services 691,200 H of patient days Rooms are cleaned daily; laundry for rooms is done, on average, every other day. a. How many patient days are available at Regis Place? b. What is the overhead rate per patient day? (Round to the nearest dollar.) c. Using the individual cost drivers, what is the overhead rate for each type of cost? (Round to the nearest dollar.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Zamboanga Hospital plans to use the activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: (Refer to image) Determine the activity cost associated with Patient 2. a. P1,388 b. P 908 c. P1,816 d. P4,555
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Objective: Consider that you are an analyst at Regeneron Pharmaceuticals. You need to decide how to allocate administrative overhead costs to Regeneron's main commercial products (Eylea, Dupixent, Kevzara and Praluent). Determine how to appropriately allocate the costs in the table below to each of the commercial products using an allocation methodology of your choice. Department2019 Annual Operating ExpenseTime spent supporting Commercial productsCommercial$200MM100%IT$100MM25%Facilities$150MM0%Finance$25MM20%Human Resources$75MM10% Use the supporting document Net Product Sales of REGN Products to facilitate your analysis. Provide a written summary of how you allocated the overhead costs to each product in an outline of no more than one page. As a starting point, it's recommended that you revisit the material we covered in Chapter 12. Guidance on calculations:Start off with Net Product Sales of REGN Products. Your objective pertains to 2019 expenses, so you should be reviewing 2019…
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Are the fixed costs as well as the 'other variable costs" included in the calculations of total overhead?
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