Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 22 Jul 2017 My Price 11.00

Casiopia Hospital

In the past, Casiopia Hospital allocated all of its overhead costs to patients based on nursing time. Casiopia has decided to switch to an activity based costing system using three activity cost pools. Information related to the new system is as follows:

 

 

Estimated Overhead

 

Activity Cost Pool

Activity Measure

Cost

Estimated Activity

Registration

Number of patients

$75,000

1,000 patients

Patient care

Nursing time

$900,000

150,000 hours

Billing

Number of bills

$120,000

2,500 bills

Data concerning two patients follows:

Patient

Nursing time

Number of bills

Wells

100 hours

2

Muncie

60 hours

3

To determine a price for its services, Casiopia Hospital takes the total cost assigned to a patient and multiplies that number by two. Compared to the old system, which patients above will be charged more under the new activity-based costing system?

A) neither patient will be charged more

B) Wells

C) Muncie

D) both Wells and Muncie

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Jul 2017 10:07 AM My Price 11.00

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