Medical Procedures is a compnay that provides various medical tests. They have a
ID: 2331757 • Letter: M
Question
Medical Procedures is a compnay that provides various medical tests. They have always allocated the overhead costs in their business using a single rate based on hours worked by the technicians who performed the various tasks Information follows Types of Procedures Direct Costs Salaries Supplies Maintenance Depreciation Total Indirect Costs Utilities Office Expenses Sanitation X-Ray C-Scan MRI Total 120,000 $150,000 $330,000 $600,000 81,000 80,000140,000 140,000 360,000 Currently they allocate the three indirect costs as follows 120,000 / 600,000-2096 to X-Ray 150,000 / 600,000-25% to C Scan 16,000 25,000 40,000 90,000 60,000 110,000 260,000 $306,000 315,000 $510,000 $1,301,000 33 0,000 / 600,000 55% to MRI $40,000 $50,000 $110,000 $200,000 24,000 30,000 66,000 $120,000 30,000 37,500,00 $150,000 Total Costs $400,000 432,500 $768,500 $1,771,000 # Procedures 5,000 4,000 3,000 293 Cost Pr procedure Profit Margins 30% over cost Fee Charged 80 123 24 37 Time to do procedure $104 160 381 X-Ray C-Scan MRI 5 min. 15 min 20 min They are considering ABC If so they will allocate General office by number of procedures scheduled Utilities by time it takes to do procedure Sanitation by time to clean and prep X-R C-Scan MRI Total Clean up and prepare for next patient (sanitation) ay 5,000 4,000 3,000 12,000 X-Ray C-Scan MRI 10 min 15 min 15 min Allocate indirect costs using ABC and assuming a 30% on cost markup- determine what they should charge for each type of procedure.Explanation / Answer
Patient care administration:-- patient, doctor, nurses, staff, hospital, room, bedno., food, biiling counter, receptionist,room type
clinical services :-- OPD, medicine, lab, medical equipments, doctors, nurses, receptionist, appointment no, treatment, price,
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