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.)

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…

Muffler Incorporated produces floor mats for cars and trucks. The owner, Kenneth Muffler, asked you to assist him in estimating his maintenance costs. Together, Mr. Muffler and you determined that the single best cost driver for maintenance costs was machine hours. Below are data from the previous fiscal year for maintenance expense and machine hours: Month 1 2 3 4 5 6 7 8 9 10 11 12 Multiple Choice O O о Maintenance Expense $ 3,440 O O Using the high-low method, total monthly fixed cost is calculated to be (Round final answer to full dollar amount with no decimal places): $212. $153. $520. $462. 3,630 3,810 3,940 3,940 4,320 3,930 $280. 3,740 3,460 3,080 2,940 3,200 Machine Hours 2,360 2,460 2,560 2,590 2,440 2,600 2,580 2,550 2,370 2,240 1,670 2,230

Fanning Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Direct labor Direct materials Fringe Benefits: Home 1 2 Assume Fanning needs to allocate two major overhead costs ($34,600 of employee fringe benefits and $25,740 of indirect materials costs) among the three jobs. 3 Total Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. Note: Round "Allocation rate" to 2 decimal places. Indirect Materials: Home 1 2 3 Total Expected Costs Direct labor Direct materials Fringe benefits Indirect materials Allocation Rate Total cost Home 1 $ 71,000 92,000 $ $ $ 0.10 0.10 0.10 Allocation Rate X $ 71,000 X X X x X Home 2 $ 99,000 141,000 x X Weight of Base The cost components to determine the total cost of each house: Home 1 Home 2 $ 71,000 $ 71,000 $ 99,000 $ 176,000 Weight of Base Home 3 $ 176,000 196,000 $ 0 = = =…