Business, 10.03.2020 19:16 caprisun1491

Surgery Center is an Outpatient Surgical clan that was profitable for many years but Medicare Cut its reimbursement, as a result, the clinic wants to better understand its cost it decides to prepare an activity-based cost analysis including an estimate of the average cost of boat general surgery in orthopedic surgery. The clinic’s three activity cost pools and their cost drivers follow. Activity Cost Pool Cost Cost Driver Driver QuantityProfessional salaries $1,600,000 Professional hours 10,000 Patient services and supplies 27,000 Number of patients 600 Building cost 150,000 Square feet 1,500 The two main surgical units and their related data follow. Service Hours Square Feet* PatientsGeneral surgery 2,500 600 400 Orthopedic surgery 7,500 900 200 * Orthopedic surgery requires more space for patients, supplies, and equipment. Required:1. Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units. 2. Compute total cost and the average cost per patient for both the general surgery and the orthopedic surgery units.

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Surgery Center is an Outpatient Surgical clan that was profitable for many years but Medicare Cut it...

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