HSA 525 WEEK 3 ASSIGNMENT
HSA 525 Week 3 Assignment
Solution 6.1
6.2
7.1
7.2
PRODUCT DESCRIPTION
HSA 525 Week 3 Assignment,
| Solution 6.1 | |||||||||
| Allocation of Indirect Costs to Radiology Departments | |||||||||
| CC#557 | CC#558 | CC#559 | CC#560 | CC#561 | |||||
| Indirect Cost Centers | Indirect Costs | Allocation Basis | Diagnostic Radiology | Ultrasound | Nuclear Medicine | CT Scan | Radiation Therapy | Total | |
| Transporters | $550,000 | A | $110,000 | $132,000 | $88,000 | $154,000 | $66,000 | $550,000 | |
| Receptionists | $360,000 | B | $60,000 | $36,000 | $72,000 | $108,000 | $84,000 | $360,000 | |
| File Room Clerks | $117,000 | C | $90,000 | $3,375 | $13,500 | $4,500 | $5,625 | $117,000 | |
| Managers | $240,000 | B | $40,000 | $24,000 | $48,000 | $72,000 | $56,000 | $240,000 | |
| Solution 7.1 | |||
| Analyzing Mixed Costs | |||
| 1 | Calculation of Variable and Fixed Costs through high low method: | ||
| Highest-Volume (in September) | 1100 | ||
| Total Cost at Highest Volume | $7,150 | ||
| Lowest-Volume (in August) | 100 | ||
| Total Cost at Lowest Volume | $1,010 | ||
| Variable Cost = (High Vol.-Low Vol.)/(Total Cost at High-Total Cost at Low) | $6.14 | per pack | |
| Solution 7.2 | |||
| 1 | Calculating the Contribution Margin: | ||
| Revenue | $1,210,000 | ||
| Variable Expenses | $205,000 | ||
| Fixed Expenses | $1,100,000 |
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