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

Stock will be selling , Atlanta Company stock is expected to follow an expo...

Atlanta Company stock is expected to follow an exponential growth rate. The relationship between the current stock price P0, future price PT after time T, and the continuously comp

Example of process cost report, Example of Process Cost Report Let sup...

Example of Process Cost Report Let suppose that the beginning work in progress in a Company in the month of November was 1,000 units that were 100 percent complete in terms of

Prepare trial balance for transactions, Encik Farid, a sole trader, started...

Encik Farid, a sole trader, started his business on 1 May 2010 under the name Farid Enterprise. The following are his business transactions for the month of May a. Encik Farid b

Manufacturing, What are the reasons of preparing income statement?

What are the reasons of preparing income statement?

Calculate the equal monthly payments and cost of financing, Calculate the e...

Calculate the equal monthly payments and the cost of financing on a 25-year mortgage. The cash value of the house today is $500,000. You are paying monthly at a fixed rate of 6% pe

Overhead analysis, what do i need to know before the overhead preparation?

what do i need to know before the overhead preparation?

What is wage rate, The employees at Warren Manufacturing Company are unioni...

The employees at Warren Manufacturing Company are unionized. As minimum requirements, the union members insist on keeping a work force of at least 300 workers, and accepting an hou

Importance of cash and cash flow statement, Cash is the other form of fund ...

Cash is the other form of fund although in a narrow sense, this refers to a supply which can be drawn upon as per to the need. Here the term cash involves both cash and cash equiva

Prepare a statement of cash flows, Bickering Ltd Income Stateme...

Bickering Ltd Income Statement for the year ended 30 June 2012   Sales (credit)                                                                           636,10

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