Homework Answers
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| Kirby Health | Support Department | |||||
| Step Down Method | Computer Services | Legal Services | Sewell Clinic | Alpharetta Clinic | Gwinnet Clinic | Total |
| Number of workstations | 10.00 | 8.00 | 18.00 | 16.00 | 18.00 | 70.00 |
| Number of patients | 6,000.00 | 4,200.00 | 5,800.00 | 16,000.00 | ||
| Costs before allocation | 360,000.00 | 200,000.00 | 560,000.00 | |||
| Answer a | ||||||
| Allocation of Computer Services (8:18:16:18) | (360,000.00) | 48,000.00 | 108,000.00 | 96,000.00 | 108,000.00 | - |
| Total costs | - | 248,000.00 | 108,000.00 | 96,000.00 | 108,000.00 | 560,000.00 |
| Answer b | ||||||
| Allocation of Legal Services (6000:4200:5800) | - | (248,000.00) | 93,000.00 | 65,100.00 | 89,900.00 | - |
| Answer c | ||||||
| Total allocated | - | 201,000.00 | 161,100.00 | 197,900.00 | 560,000.00 |
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many years, but Medicare has cut its reimbursements by as much as
50%. As a result, the clinic wants to better understand its costs.
It decides to prepare an activity-based cost analysis, including an
estimate of the average cost of both general surgery and orthopedic
surgery. The clinic’s three cost centers and their cost drivers
follow.
[The following information applies to the questions displayed below.) We Care is an...
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