- East Side Medical Associates Operates A Walk In Medical Clinic In Tempe Arizona I Click The Icon To Additional Informa 1 (68.75 KiB) Viewed 56 times
- X More info 90.000 $ 2.550,000 The clinic includes two different departments, Urgent Care, which serves patients with minor to moderate acute illnesses and injuries, and Living Well, which administers vaccines, school and work physicals, and conducts workshops on healthy living topics. The center's budget for 2020 follows. Professional salaries: 4 physicians * $ 180,000 $ 720,000 2 X-ray technicians * $ 90,000 180,000 12 nurses * $ 130,000 1,560,000 1 nutritionist * $ 90,000 Medical supplies 380,000 Rent and clinic maintenance 260,000 Laboratory services 418,000 General overhead, including administrative staff 437,000 Total $ 4,045,000 Kourtney Lee, the director of the clinic, is keen on determining the cost of each department. Lee compiles the following data describing employee allocations to individual programs: Print Done
Х Data table Square feet of clinic space Patient visits Number of laboratory tests Urgent Care Living Well 8,000 12,000 20,000 18,000 17,000 2,000 Total 20,000 38,000 19,000 Print Done
Calculate the budgeted indirect cost rates for each category. (Round the cost driver rates to the nearest cent, XXX, as needed. Abbreviations used maintenance - clinic maintenance, General overhead General overhead, including administrative staff soft square foot.) Cost driver rate Medical supptius Rent and maintenance Laboratory services General overhead Requirement 1. b. Using an activity based costing approach to cost analysis, calculate the budgeted cost of each department and the budgeted cost per patient visit of each department Calculate the budgeted costs for the Urgent Care cepartment in this step, and then the budgeted costs for the Living Well department in the following step (Complete all input fields. Enter a "O" for any zero balances. Round the cost per patient visit amounts to the nearest cent. X.XX.)
Requirement 1. b. Usng an activity-based costing approach to cast analysis calculate the budgeted cost of each department and the budgeted cost per patient visk of each department Calculate the budgeted costs for the Urgent Care department in this step. and then the budgeted costs for the Living Well department in the following step (Complete all input felos. Enter a "Y" for any zero balances. Round the cost per patient vist amounts to the nearest cent XXX) Urgent Care Living Well Professional salarios Physicians X-ray technicians Nurses Nutritionists Total selaries
Nutritionists Total salaries Medical supplies Rent and dinig maintenance Laboratory sorvices General avocad Total cost Number of patent visits Cost per pallery Visit Choose from any list or enter any number in the input fields and then continue to the next question
Requirement 1. c. What benefits can Lower Valey Medical Associates obtain by implementing the ABC system? (Select all that apply) DA. The ABC system chooses cost drivers for overhead costs that have a cause-and-affect relationship between the cost drivers and the costs B. The ABC system will assist Wu in selling prices for the programs that more accurately reflect the costs of each program. c. Designing planning, and implementing an ABC system is often less time consuming, complex, and costy that designing, planning, and implementing a simple costing system D. By mplementing the ABC system Wu can gain a more detailed understanding of costs and cost drivers. The system can yleld insight into the efficiencies with which various activities are performed E The ABC system more accurately allocates costs because it identifies better cost drivers F. The ABC system will help Wu determine which programs are the most costly to operate. This will be useful in making long-run decisions as to which programs to offer or emphasize. Requirement 2. What factors, other than cost, do you think Lower Valley Medical Associates should consider in allocating resources to its departments? (Seluct all that apply.) Requirement 2. What factors, other than cost, do you think Lower Valley Medical Associates should consider in allocating resources to its departments? (Select all that apply) DA. The concern with using costs (per patient visit) as the rule to allocate resources to its departments is that it emphasizes "input to the exclusion of "outputs or effectiveness of the departments. B. Unlike many manufacturing companies, where the outputs are obvious because they are tangible and measurable, the outputs of service organizations are more difficult to measure, C. Unlike many manufacturing companies, where the outputs are not so obvious, the outputs of service organizations are easier to measure D. Management's goal is to maximize costs per-patient visit in order to minimize the overall length of time patients need assistance through one or both of the departments. The problem, here is measuring inputs