Yellville Regional Hospital is a small hospital with two service departments and three revenue areas:Service DepartmentDirect Costs Square Feet Laundry Pounds Housekeeping (HK)$80,000 - 16,000 Laundry$132,000 500 - Revenue Areas: Surgery$400,000 1,500 48,000 Semiprivate rooms$200,000 2,000 24,000 Maternity$150,000 1,000 12,000 The hospital wants to allocate the service department costs to the revenue areas. Housekeeping is allocated based on square footage; Laundry is allocated based on pounds of laundry. The normal capacity for Surgery is 200 hours per month; normal capacity for semiprivate rooms is 600 patient days; and normal capacity for maternity is 200 patient days.Required:Determine the overhead rate for the three revenue areas. Allocate the service
department costs to the revenue areas using the step method. Allocate the service department with the largest dollar value first.
What will be an ideal response?
Surgery: $2,485.34/hr; Semiprivate rooms: $461.04/day; Maternity: $941.56/day.
Surgery: $497,067/200 hrs = $2,485.34/hr.
Semiprivate Rooms: $276,622/600 patient days = $461.04/day.
Maternity: $188,311/200 patient days = $941.56/day.
You might also like to view...
In a hierarchical data model, data elements are related in many-to-many relationships.
Answer the following statement true (T) or false (F)
If investors are risk averse and hold only one stock, we can conclude that the required rate of return on a stock whose standard deviation is 0.21 will be greater than the required return on a stock whose standard deviation is 0.10. However, if stocks are held in portfolios, it is possible that the required return could be higher on the stock with the low standard deviation.
Answer the following statement true (T) or false (F)
The positive psychology perspective on teams focuses upon:
a. Task performance b. Team intelligence c. The multiple ways for the team to successfully operate d. Team member well-being
Liquid assets are less risky than investment assets
Indicate whether the statement is true or false