Riverside - 202,000 - 74,421 127,579 Allocation Patient...

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RIVERSIDE CLINIC A. DIRECT METHOD OF SERVICE DEPARTMENT COST ALLOCATION Direct-Patient-Care Depts. Using Services Orthopedics Internal Medicine Providers of Service Cost to be Allocated Proportion Amount Proportion Amount Patient Records 100,000 0.30 30,000 0.70 70,000 Personnel 60,000 0.33 20,000 0.67 40,000 Admin and Acctg 190,000 0.37 70,000 0.63 120,000 TOTAL 350,000 0.34 120,000 0.66 230,000
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B. STEP-DOWN METHOD OF SERVICE DEPARTMENT COST ALLOCATION Personnel First Service Departments Direct-Patient-Care Department Personnel Patient Records Orthopedics Internal Medicine Costs prior to allocation 60,000 190,000 100,000 Allocation of Personnel Dept. costs 12,000 3,000 15,000 30,000
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Unformatted text preview: 202,000 - 74,421 127,579 Allocation Patient Records Dept. costs 103,000 30,900 72,100 Total costs allocated to Direct-Patient-Care Depts. 120,321 229,679 Admin & Acctg. First Service Departments Direct-Patient-Care Department Adm & Acctg Personnel Patient Records Orthopedics Internal Medicine Costs prior to allocation 190,000 60,000 100,000 Allocation of Personnel Dept. costs 9,500 66,500 114,000 69,500 4,344 21,719 43,438 C. Application of FIXED vs. VARIABLE costs: Direct Method Department Projected Patient Load Projected Proportion of Patient Load Cost Allocation Orthopedics Internal Medicine Budgeted Variable Costs Budgeted Fixed Costs Total Patient Records...
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This note was uploaded on 01/16/2012 for the course MBA 101 taught by Professor Wormer during the Spring '08 term at Indian Institute Of Management, Ahmedabad.

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Riverside - 202,000 - 74,421 127,579 Allocation Patient...

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