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Chec Metropolitan Dental Associates is a large dental practice in Chicago. The firms controller is preparing the budget for2 Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 10 points Prepare the dirCheck rm 2 Complete this question by entering your answers in the tabs below. Required 1Required 2Required 3 10 points PreparComplete this question by entering your answers in the tabs below Required 1 Required 2 Required3 Prepare the overhead and ad

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Answer #1

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

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