Chapter 12 Individual Assignment

Chapter 12 Individual Assignment - number of hours spent by...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Arshdeep Sandhu Chapter 12 Ind. Assignment Problem 12-55 Part 1 Cost Pool Responsibility Centre Allocation Base Percenta ge of Total Costs Distributed Facilities General Medicine 15,000 m 2 37.5% 71,250 Surgical 8,000 m 2 20.0 38,000 Medical Support 9,000 m 2 22.5 42,750 Administr ative 8,000 m 2 20.0 38,000 Total 40,000 m 2 100.0% $ 190,000 Utilities General Medicine 135,000 m 3 33.75% 8,100 Surgical 100,000 m 3 25 6,000 Medical Support 90,000 m 3 22.50 5,400 Administr ative 75,000 m 3 18.75 4,500 Total 400,000 m 3 100% $ 24,000 Arshdeep Sandhu, ADMN 3107, P 12-55, March 29, 2011
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Arshdeep Sandhu Chapter 12 Ind. Assignment General General Medicine 30 Emp. 30% 66,000 Admin. Surgical 20 Emp. 20 44,000 Medical Support 20 Emp. 20 44,000 Administr ative 30 Emp. 30 66,000 Total 100 Emp. 100% $ 220,000 Communit y General Medicine 2,000,000 50% 20,000 Outreach Surgical 1,250,000 31.25 12,500 Medical Support 750,000 18.75 7,500 Total $ 4,000,000 100% $ 40,000 Part 2. Another allocation base for community outreach costs is the
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: number of hours spent by each division's personnel in community outreach activities. This base would be more reflective of the actual contribution of each division to the program. 2 Arshdeep Sandhu Chapter 12 Ind. Assignment Part 3. The reason for allocating utility costs to the divisions is so that each division's cost reflects the total cost of running the division. Since none of the divisions can operate without electricity, heat, water, and so forth, these costs should be reflected in divisional cost reports. By allocating such costs, division managers are made aware of these costs and are able to reflect the costs when pricing services and seeking third-party reimbursements, such as those from insurance companies. Arshdeep Sandhu, ADMN 3107, P 12-55, March 29, 2011...
View Full Document

This note was uploaded on 03/27/2011 for the course ECON 1106 taught by Professor Abc during the Spring '11 term at Algoma University.

Page1 / 3

Chapter 12 Individual Assignment - number of hours spent by...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online