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Healthcare finance - total expense for Cystoscopy - 30 Jan, 2013

David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer problems 7, 8 and 9.

 

 

Square Footage

Direct

Expenses

Lab Tests

Utilities

 

$      200,000

 

Administration

2,000

500,000

 

Laboratory

2,000

625,000

 

Day-op Suite

3,000

1,400,000

4,000

Cystoscopy

1,500

350,000

500

Endoscopy

1,500

300,000

500

Total

10,000

$   3,375,000

5,000

 

 

 What are the Cystoscopy Department's total expenses?

 

                                    A  $520,751

                                    B.  $529,771

                                    C.  $452,695

                                    D.  $525,621



Category : Cost Accounting

Search Keywords :
Healthcare , David , Jones , Surgical , Day-op , Cystoscopy , Endoscopy , Expenses 


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Answer  - 30 Jan, 2013
Utility cost to administration = 200,000 X 2,000/10,000 = 40,000 Laborat....


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