ZuoTi.Pro
Question

St. Mark's Hospital contains 450 beds. The average occupancy rate is 80% per month. In other...

St. Mark's Hospital contains 450 beds. The average occupancy rate is 80% per month. In other words, on average, 80% of the hospital's beds are occupied by patients. Atthis level of occupancy, the hospital's operating costs are $32 per occupied bed per day, assuming a 30-day month. This $32 figure contains both variable and fixedcost elements.

During June, the hospital's occupancy rate was only 60%. A total of $326,700 in operating cost was incurred during the month.

Requirement 1:
(a)

Estimate the variable cost per occupied bed on a daily basis using the high-low method.
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1

Total cost of 80% occupancy = 450x30x32x80% = $345,600

→ High: $345,600

→ Low: $326,700

Difference in occupancy = 450x30x80% - 450x30x60% = 2,700

→ Variable cost per occupancy basis = (345,600-326,700)/2,700 = 7

  • Variable cost of 80% occupancy = 450x30x80%x7 = $75,600

  • Fixed cost of 80% occupancy = $345,600 - $75,600 = $270,000 

answered by: Đặng Phan Toàn
8 2
Add a comment
Know the answer?
Add Answer to:
St. Mark's Hospital contains 450 beds. The average occupancy rate is 80% per month. In other...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Occupancy for a hospital The Valley Hospital measures the in-patient occupancy of the hospital by determining...

    Occupancy for a hospital The Valley Hospital measures the in-patient occupancy of the hospital by determining the number of patient days divided by the number of available bed days in the hospital for a time period. The following in-patient data are available for the months of April, May, and June: Admitted Patients: April - 1,440 May - 1,860 June - 2,250 Average Length of stay per patient April - 4.0 days May - 3.5 days June - 3.0 days The...

  • Great Eastern Inns has a total of 1,200 rooms in its chain of motels located in...

    Great Eastern Inns has a total of 1,200 rooms in its chain of motels located in eastern Canada. On average, 65% of the rooms are occupied each day. The company’s operating costs are $20 per occupied room per day at this occupancy level, assuming a 30-day month. This $20 figure contains both variable and fixed cost elements. During February, the occupancy rate dropped to only 45%. A total of $399,600 in operating cost was incurred during February. Required: 1. Estimate...

  • .10 An 80-room motel forecasts its average room rate to be $68.00 for next year at...

    .10 An 80-room motel forecasts its average room rate to be $68.00 for next year at 75% Occupancy. The rooms department has a fixed wage cost of $186,000. Variable wage Cost for housekeeping is $9.00 an hour; it takes one-half hour to clean a room. Fringe benefits are 18% of total wages. Linen, laundry, sup- plies, and other direct costs are $2.75 per occupied room per day. The motel also has a 50-seat, limited-menu snack bar. Breakfast rev- enue is...

  • this is from the Middletown General Hospital Emergency Department Observation Unit Analysis Exercise...

    this is from the Middletown General Hospital Emergency Department Observation Unit Analysis Exercise Middletown General Hospital ER Observation Unit 1. Questions: What was the average census of observation patients in the hospital? b. Using the 2011 patient flows, how large should the ED observation unit be to achieve a а. target utilization of 80% What was the profit flow in $/day from patients who entered the hospital (on either observation or admitted status) through the ED? d. Assume that an...

  • Presbyterian Hospital has been hit with a number of complaints about its food service from patients,...

    Presbyterian Hospital has been hit with a number of complaints about its food service from patients, employees, and cafeteria customers. These complaints, coupled with a very tight local labor market, have prompted the organization to contact ABC Food Service about the possibility of an outsourcing arrangement. The hospital's business office has provided the following information for food service for the year just ended: food costs, $890,000; labor, $85,000; variable overhead, $35,000; allocated fixed overhead, $60,000; and cafeteria net income, $80,000....

  • Case 5-4 Shouldice Hospital in Canada is widely known for one thing—hernia repair! In fact, that...

    Case 5-4 Shouldice Hospital in Canada is widely known for one thing—hernia repair! In fact, that is the only operation it performs, and it performs a great many of them. Over the past two decades this small 102-bed hospital has averaged 7,000 operations annually. Last year, it had a record year and performed nearly 7,500 operations. A hernia repair operation at Shouldice Hospital is performed by one of the 12 full-time surgeons assisted by one of seven part-time assistant surgeons....

  • Direct Labor Budget for a Service Business Ambassador Suites Inc. operates a downtown hotel property that...

    Direct Labor Budget for a Service Business Ambassador Suites Inc. operates a downtown hotel property that has 300 rooms. On average, 80% of Ambassador Suites’ rooms are occupied on weekdays and 40% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant staff for weekdays and weekends. You have determined that the housekeeping staff requires 30 minutes to clean each occupied room. The housekeeping staff is paid $14 per...

  • Direct Labor Budget for a Service Business Ambassador Suites Inc. operates a downtown hotel property that...

    Direct Labor Budget for a Service Business Ambassador Suites Inc. operates a downtown hotel property that has 300 rooms. On average, 80% of Ambassador Suites’ rooms are occupied on weekdays and 40% are occupied during the weekend. The manager has asked you to develop a direct labor budget for the housekeeping and restaurant staff for weekdays and weekends. You have determined that the housekeeping staff requires 30 minutes to clean each occupied room. The housekeeping staff is paid $14 per...

  • The Metropolitan City Hospital is unionized. In 2011, nurses receired an average of $45,000, The hospital...

    The Metropolitan City Hospital is unionized. In 2011, nurses receired an average of $45,000, The hospital administrator is considering how the con- tract with nurses should be changed for 2012. In turn, the current practice of charging nursing costs to each department might also be changed. Each departmentis accountable for its financial performance. Revenues and xpenses are allocated to departments. Consider the expenses of the obstetrics department in 2011 Variable expenses (based on 2011 patient-days) are Meals 510,000 Laboratory 900,000...

  • Cost Behavior, High-Low Method, Pricing Decision St. Teresa's Medical Center (STMC) offers a number of specialized...

    Cost Behavior, High-Low Method, Pricing Decision St. Teresa's Medical Center (STMC) offers a number of specialized medical services, including neuroscience, cardiology, and oncology. STMC's strong reputation for quality medical care allowed it to branch out into other services. It is now ready to expand its orthopedic services and has just added a free-standing orthopedic clinic offering a full range of outpatient, surgical, and physical therapy services. The cost of the orthopedic facility is depreciated on a straight-line basis. All equipment...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT