Solution-Calculate costs of using operating doctor for a

Calculate costs of using operating doctor for a knee surgery

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Reference no: EM133175044

Take the example of the healthcare industry: What are the costs of a knee surgery? We want to use time-driven activity-based costing to answer this question.

Activity	Duration of time per surgery (min)	Cost per minute (€ / min)
Consultation and scheduling	30	6.00
Preparation of surgery	10	0.82
Sterilization	5	0.56
Operating doctor	45	6.00
Certified nurse anesthetist	60	1.15
Staff anesthesiologist	20	6.00

a) Please calculate the costs of using an operating doctor for a knee surgery.

b) Please calculate the total costs (in €) of a knee surgery under time-driven activity-based costing.

c) Please assume that the table shows the budgeted cost per minute. Now assume that the actual costs incurred for the activity "sterilization" are € 600,000 per year and theoretical capacity is 25,000 hours. The practical capacity equals 80% of the theoretical capacity.

d) Please calculate the actual cost per minute.

e) Assume the actual cost per minute to be lower than the budgeted cost per minute. Please select the keyword which is most appropriate for this situation.

-Wrong allocation

-Underallocation

-Overallocation

-None of the above

Reference no: EM133175044

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Calculate costs of using operating doctor for a knee surgery

Reference no: EM133175044

Reference no: EM133175044

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