Activity based costing, Cost Accounting

Assignment Help:

As controller for Edmonton Cosmetic Hospital, you are looking into the possibility of utilizing Activity- Based-Costing to assign overhead costs to patient surgeries. As a first step, you have determined that overhead costs can be assigned to one of the following three activities:  

314_Activity- Based-Costing.png

Hospital services are classified into several broad categories, two of which are In-Patient Care and Out- Patient Care. The volume measures for In-Patient and Out-Patient Care are as follows:

622_Activity- Based-Costing 2.png

(A)  Under a traditional overhead allocation method 

i. What would be the Predetermined Overhead Rate based on direct labour hours. 

ii. What would be the allocation of overhead for In-Patient care and Out-patient care.

Show calculations 

(B)  Under ABC Costing

i. What is the allocation rate for each activity (Professional salaries, Building costs, and Risk management?

ii. What is the total allocation overhead for In-patient care and Outpatient care? Show calculations.


Related Discussions:- Activity based costing

Accounting, Ask What is the major value of the weighted cost of capital cal...

Ask What is the major value of the weighted cost of capital calculation for the firm? question #Minimum 100 words accepted#

Calculate the payback and discounted payback period, Lapsol limited manufac...

Lapsol limited manufacture electrical appliances for the export market. The management of the company are considering investing in one of two possible capital expenditure projects.

Process costing, how to prepare separate accounts for each process given ha...

how to prepare separate accounts for each process given having been givent normal loss,output,overhead and output passes to next process

Accounting for labor, weekly working hour 48 , hourly wage rate 15$ , pri...

weekly working hour 48 , hourly wage rate 15$ , price rate per unit 6$ , normal time taken per piece 36 minuets , normal output per week 220 pieces , actual output per week 275 pie

Integrated ledger system, Integrated Ledger System An integrated accou...

Integrated Ledger System An integrated account ledger system, which has a number of features that may be viewed as preferable to the interlocking ledger system. In present dec

Variance analysis from a standard costing system, It may be dispute that  ...

It may be dispute that  in a  total quality environment, variance analysis  from a standard costing system is redundant.í Talk about the validity of this statement.

ECONOMIC ORDER QUANTITY, ANNUAL DEMAND = 2400 UNITS ORDERING COST PER UNIT ...

ANNUAL DEMAND = 2400 UNITS ORDERING COST PER UNIT = RS.4.00/- UNIT PRICE = RS 2.40/- STORAGE COST = 2% P.A INTEREST RATE = 10 % P.A LEAD TIME = HALF MONTH CALCULATE ECONOMIC ORDER

Construct p&l statement , You are considering starting a walk-in-clinic.  ...

You are considering starting a walk-in-clinic.  Your financial projections for the first year of operations are as follows: Revenues (10,000 visits) $400

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd