Hsa 525 Week 3 Assignment

HSA 525 WEEK 3 ASSIGNMENT

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HSA 525 Week 3 Assignment,

Solution 6.1

Allocation of Indirect Costs to Radiology Departments

CC#557 CC#558 CC#559 CC#560 CC#561

Indirect Cost Centers Indirect Costs Allocation Basis Diagnostic Radiology Ultrasound Nuclear Medicine CT Scan Radiation Therapy Total

Transporters $550,000 A $110,000 $132,000 $88,000 $154,000 $66,000 $550,000

Receptionists $360,000 B $60,000 $36,000 $72,000 $108,000 $84,000 $360,000

File Room Clerks $117,000 C $90,000 $3,375 $13,500 $4,500 $5,625 $117,000

Managers $240,000 B $40,000 $24,000 $48,000 $72,000 $56,000 $240,000

Solution 7.1

Analyzing Mixed Costs

1 Calculation of Variable and Fixed Costs through high low method:

Highest-Volume (in September) 1100

Total Cost at Highest Volume $7,150

Lowest-Volume (in August) 100

Total Cost at Lowest Volume $1,010

Variable Cost = (High Vol.-Low Vol.)/(Total Cost at High-Total Cost at Low) $6.14 per pack

Solution 7.2

1 Calculating the Contribution Margin:

Revenue $1,210,000

Variable Expenses $205,000

Fixed Expenses $1,100,000

HSA 525 Week 3 Assignment

Solution 6.1

6.2

7.1

7.2

HSA 525 Week 3 Assignment,

Solution 6.1

Allocation of Indirect Costs to Radiology Departments

CC#557 CC#558 CC#559 CC#560 CC#561

Indirect Cost Centers Indirect Costs Allocation Basis Diagnostic Radiology Ultrasound Nuclear Medicine CT Scan Radiation Therapy Total

Transporters $550,000 A $110,000 $132,000 $88,000 $154,000 $66,000 $550,000

Receptionists $360,000 B $60,000 $36,000 $72,000 $108,000 $84,000 $360,000

File Room Clerks $117,000 C $90,000 $3,375 $13,500 $4,500 $5,625 $117,000

Managers $240,000 B $40,000 $24,000 $48,000 $72,000 $56,000 $240,000

Solution 7.1

Analyzing Mixed Costs

1 Calculation of Variable and Fixed Costs through high low method:

Highest-Volume (in...