Answer 1 Direct professional cost budget for the month of June
Total direct professional labor cost budget is calculated as follow
Projected visits total in a year = 60000
Visits in a Month as evenly distributed = 60000/12 = 5000
Hourly visits 70% of total visits = 70% of 5000 = 3500
Half Hourly visits = 5000-3500 = 1500
Total Hours spent = 3500*1 full hour + 1500*1/2 half hour
= 3500+750 = 4250 hours
Total labor cost = 4250*90 = $382500
on the basis of above calculation total labor cost budget is as follow
Professional Services in June | |
One Hour visits | 3500 |
Half-hour visits | 1500 |
Total direct professional labor hours | $ 4,250 |
Hourly rate for dental associates | $ 90 |
Total direct professional labor cost | $ 382,500 |
Answer 2 Collection budget for the month of June
Half Hour visits in a month = 1500
One hour visits in a month = 3500
Total Billing in a month = 1500*60+3500*120
= $90000+$420000
= $510000
Collection in same month is 90%
Collection in next month is 10%
Collection in June = 90% of June billing + 10% of May Billing
June billing = $510000
May Billing = $510000
Collection in June = 90% of $510000 + 10% of $510000
= $459000+$51000
= $510000
.on the basis of above calculation the collection budged schedule for the month of June is as follow
May | June | ||
Half-hour visits | 1500 | 1500 | |
Billing rate | 60 | 60 | |
Total billing for half hour visits | 90000 | 90000 | |
One hour visits | 3500 | 3500 | |
Billing Rate | 120 | 120 | |
Total billing for one hour visits | 420000 | 420000 | |
Total Billing during month | 510000 | 510000 | |
Percentage of month's billing collected during June | 10 | % | 90 |
Collections during June | 51000 | 459000 | |
Total Collections in June | 510000 |
Answer 3 The overhead and administrative expense budged schedule for the month of June
Overhead rate for patient registration and records = $3.10 per visits
Total visits = 5000
Overhead for patient registration and records = 5000 x $3.10 per visits = $15500
Other overhead and administrative expense rate = $7.60 per labor hour
Total Labor hours in June = 4250
Other overhead and administrative expense = 4250 x 7.60 = $32300
on the basis of above calculation the overhead and administrative expense budged schedule for the month of June is as follow
The overhead and administrative expense budged schedule for the month of June | |
Patient registration and records | $15500 |
other Overhead and administrative expenses | $32300 |
Total overhead and administrative expenses | $47800 |
FEEL FREE TO ASK ANY CLARIFICATION IF ANY REQUIRED KINDLY PROVIDE FEED BACK BY THUMBS UP IF SATISFIED IT WILL BE HIGHLY APPRECIATED
THANK YOU
Chec Metropolitan Dental Associates is a large dental practice in Chicago. The firm's controller is preparing...
Metropolitan Dental Associates is a large dental practice in Chicago. The firm's controller is preparing the budget for the next year. The controller projects a total of 60,000 office visits, to be evenly distributed throughout the year. Eighty percent of the visits will be half- hour appointments, and the remainder will be one-hour visits. The average rates for professional dental services are $50 for half-hour appointments and $105 for one-hour office visits. Ninety percent of each month's professional service revenue...
Exercise 9-30 Professional Services Budget; Dental Practice; Activity-Based Budgeting (LO 9-3, 9-4, 9-5) Metropolitan Dental Associates is a large dental practice in Chicago. The firm's controller is preparing the budget for the next year. The controller projects a total of 48,000 office visits, to be evenly distributed throughout the year. Seventy percent of the visits will be half-hour appointments, and the remainder will be one-hour visits. The average rates for professional dental services are $50 for half-hour appointments and $110...
Production Budget Weightless Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Bath Scale Gym Scale East Region unit sales 25,400 33,000 West Region unit sales 27,400 28,800 Total 52,800 61,800 The finished goods inventory estimated for October 1 for the Bath and Gym scale models is 1,600 and 2,000 units, respectively. The desired finished goods inventory for October 31 for the Bath and...
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2019 114,000 Unit sales for December 2019 102,000 Expected unit sales for January 2020 114,000 Expected unit sales for February 2020 113,000 Expected unit sales for March 2020 117,000 Expected unit sales for April 2020 126,000...
Royal Company is preparing budgets for the second quarter ending
June 30. Last year's sales for the corresponding period were:
A. The company expects this year's sales to increase by 25%. The
selling price is $13 per unit. Prepare a Sales
Budget.
B. The company desires to have finished inventory on hand at the
end of each month equal to 30 percent of the following month's
budgeted unit sales. On March 31, there were 3,000 units on hand.
Prepare a...
Pletcher Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the master budget for the first 2 quarters of 2017. All that remains in this process is the cash budget. The following information has been collected from other portions of the master budget and elsewhere. $38,340 31,950 5,112 178,920 178,920 8,946 98,406 127,800 Beginning cash balance Required minimum cash balance Payment of income taxes (2nd quarter) Professional salaries: 1st quarter 2nd quarter...
Ana Carillo and Associates is a medium-sized company located
near a large metropolitan area in the Midwest. The company
manufactures cabinets of mahogany, oak, and other fine woods for
use in expensive homes, restaurants, and hotels. Although some of
the work is custom, many of the cabinets are a standard size.
One such non-custom model is called Luxury Base Frame. Normal
production is 1,000 units. Each unit has a direct labor hour
standard of 5 hours. Overhead is applied to...
Cash Budget Aragon and Associates has found from past experience that 25% of its services are for cash. The remaining 75% are on credit. An aging schedule for accounts receivable reveals the following pattern: a. Ten percent of fees on credit are collected in the month that service is rendered. b. Sixty percent of fees on credit are collected in the month following service. C. Twenty-six percent of fees on credit are collected in the second month following service. d....
Cash Budget Aragon and Associates has found from past experience that 25% of its services are for cash. The remaining 75% are on credit. An aging schedule for accounts receivable reveals the following pattern: Ten percent of fees on credit are collected in the month that service is rendered. Sixty percent of fees on credit are collected in the month following service. Twenty-six percent of fees on credit are collected in the second month following service. Four percent of fees...
SalesUnit sales for November 2019114,000Unit sales for December 2019103,000Expected unit sales for January 2020114,000Expected unit sales for February 2020111,000Expected unit sales for March 2020116,000Expected unit sales for April 2020125,000Expected unit sales for May 2020136,000Unit selling price$12Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts...