Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. exhibit 12.11 basic statistics for cost allocation

EXHIBIT 12.11 BASIC STATISTICS FOR COST ALLOCATION IN A SURGERY CLINIC USED IN PROBLEM 12.11...

60.1K

Verified Solution

Question

Finance

EXHIBIT 12.11 BASIC STATISTICS FOR COST ALLOCATION IN A SURGERY CLINIC USED IN PROBLEM 12.11

A (Square Feet) B (Dept. Costs) C (Lab Tests)
Utilities $500,000
Administration 5,000 $800,000
Laboratory 3,000 $850,000
Day-Op Suite 5,000 $3,500,000 7,000
Cytoscopy 3,000 $675,000 3,000
Endoscopy 2,000 $400,000 2,500
Total 18,000 $6,725,000 12,500

Bobbie Jones, the manager of the endoscopy suite, is concerned about adding more space. She contends that if the cystoscopy and endoscopy units were combined, fewer staff would be needed, and direct costs could be reduced by $50,000 ($25,000 in each unit). She also feels that the day-op area is underutilized, and the 500 square feet could be used by a combined unit when excess capacity was needed. Assuming that the 500 square feet were to be allocated equally between the endoscopy and cystoscopy suites, what would the total allocated costs for each of these two services be under this scenario?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

In which of these cases should mode be used O When the data is represented...

Statistics
1.2K views

In what follows use any of the following tests/procedures: Regression, multiple regression, confidence intervals, one sided T-test...

Chemistry
1.2K views

1. When 15.0 mL of a 9.06×10-4M sodium phosphate solution is combined with 15.0 mL of a 4.38×10-4M chromium(III)...

Biology
1.2K views

Which statement about osmoregulators is NOT TRUE O a Osmoregulators are able to regulate their...

Physics
1.2K views

The self inductance of the motor of an electric fan is 10H In order to...

Accounting
1.2K views

12. 11 Determine cash flows Kauai Tools Inc. is planning to invest in new manufacturing...

Accounting
1.2K views

Question 5 1 pts Which of the following is true regarding...

Accounting
1.2K views

cost of goods sold is an expense shown separately from other expenses in an income...

Accounting
1.2K views

could i get help with the rest of this question A partnership...

Accounting
1.2K views

John purchased 300 shares of IBM at $27 per share on 7/1/17. Answer each question...

Accounting
1.2K views

QS 3-18 (Algo) Preparing an adjusted trial balance LO P5 Following are unadjusted balances along...

Accounting
1.2K views

4) Accounts receivable valued at $40,000 are sold for $38,000. How is the difference of...