Reference no: EM13918633
DATA INPUT
Total annual office visits 48,000
1/2 Hour appointments 80%
Average rate for 1/2-hour visits $60
1 Hour appointments 20%
Average rate for 1-hour visits $105
Revenue collected during month when services are rendered 90%
Revenue collected the month following when services are rendered 10%
Dental associates earn $90 per hour
Cost-driver rates are as follows:
Patient registration and records $3.00 per office visit (of any length)
All other overhead and administrative expenses $7.50 per direct professional labor hour
SOLUTION
1. Direct professional labor budget schedule for the month of June:
Professional services in June:
3200 1/2 Hora 3.75 12000
800 1 Hora 7.5 6000
2. Cash collections during June for professional services rendered during May and June:
May June
3. Overhead and administrative expense budget schedule for the month of June.
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