Question

A pediatric ward in a metropolitan hospital has the following information:

Resources	Cost of Resources				Activities	Nursing hours
Supervision		$80,000			Supervising nurses		2,000
Supplies and uniforms		40,000			Treating patients		5,000
Salaries		500,000			Providing hygienic care		4,000
Computer		15,000			Responding to requests		6,000
Monitor		30,000			Monitoring patients		3,000
Total		$665,000					20,000

• Monitors are used only for the monitoring activity
• The one computer is used 1,200 hours for supervisory work and 800 hours for monitoring work
• The nursing resources (supplies, uniforms, and labor) are assigned to activities using nursing hours. The nursing supervisor spends 100 percent of her time on supervision.

Required:

1.	Fill in the following table that represents the work distribution matrix for the pediatric ward (if an amount is zero, enter "0"):
	Percentage of Time on Each Activity Activity Supervisor Nurses Supervising nurses % % Treating patient % % Providing hygienic care % % Responding to requests % % Monitoring patients % %
2.	Select all resources where driver tracing is used to assign costs to activities:
	Supervision, Monitor
3.	Calculate the cost of each activity:
	Activities Cost Supervising nurses $ Treating patients Providing hygienic care Responding to requests Monitoring patients
4.	Calculate the final cost of each activity below, assuming the cost of secondary activities is assigned to primary activities in proportion to the labor content of primary activities (if an amount is zero, enter "0"; round to the nearest dollar):
	Activities Final cost Supervising nurses $ Treating patients Providing hygienic care Responding to requests Monitoring patients

Answer 1

Ans-1

ACTIVITY ACTUAL HOURS % of TOTAL WORK Supervising Nurses 2000 10% Treating Patients 5000 25% Providing hygienic care 4000 20% Responding to requests 6000 30% Monitoring patients 3000 15% 20000 100%

Ans-2

Resources Cost Allocated to Supplies & Uniforms 40000 Basis Nursing hours Salaries 500000 Basis Nursing hours Computer 15000 Supervisory and Monitoring works

Ans-3

TOTAL COST 143000 ACTIVITY Supervising Nurses Treating Patients Providing hygienic care Responding to requests Monitoring patients Share of Supplies Share of DIRECT COST & Uniforms Share of Salaries Computer 80000 4000 50000 9000 0 10000 125000 0 0 8000 100000 0 0 12000 150000 0 30000 6000 75000 6000 135000 108000 162000 117000 665000

Note: Computer cost allocated in ratio of 1200:800 or 3:2 between Supervision and Monitoring activities

Supplies & Uniforms , Salaries allocated basis the % of work as in table provided in Ans-1 above

Ans-4

Of all the activities the categorization between Primary and Secondary is as below:

ACTIVITY Category Supervising Nurses Secondary Treating Patients Primary Providing hygienic care Primary Responding to requests Secondary Monitoring patients Primary

Basis above allocation of costs of Supervision , Responding requests will be allocated to Treating patients , Providing hygienic care and Monitoring patients in ratio = 5000:4000:3000 or 5:4:3

The Final Costs come as hereunder

Alloctated share of Cost of TOTAL FINAL Cost TOTAL Before ACTIVITY Allocation Supervising Responding Supervising Nurses 143000 -143000 0 0 Treating Patients 135000 59583 67500 262083 Providing hygienic care 108000 47667 54000 209667 Responding to requests 162000 0 - 162000 Monitoring patients 117000 35750 40500 193250 0