Build_a_Spreadsheet_09_29

Build_a_Spreadsheet_09_29 - $144,000 2. Cash collections...

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DATA INPUT Total annual office visits 48,000 1/2 Hour appointments 80% Average rate for 1/2-hour visits $40 1 Hour appointments 20% Average rate for 1-hour visits $70 Revenue collected during month when services are rendered 90% Revenue collected the month following when services are rendered 10% Dental associates earn $60 per hour Cost-driver rates are as follows: Patient registration and records $2.00 per office visit (of any length) All other overhead and administrative expenses $5.00 per direct professional labor hour SOLUTION 1. Direct professional labor budget schedule for the month of June: Office visits per month = 48,000 / 12 = 4,000 Professional services in June: 1-hour visits 20% x 4,000 x 1 hr. = 800 hours 1/2 hour visits 80% x 4,000 x 1/2 hr. = 1,600 hours Total direct professional labor 2,400 hours Hourly rate for dental associates x $60 Total direct professional labor cost
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Unformatted text preview: $144,000 2. Cash collections during June for professional services rendered during May and June: May June 1/2 hour visits 4,000 x 80% = 3,200 3,200 Billing rate $40 $40 Total billings for 1/2-hour visits 128,000 128,000 1-hour visits 4,000 x 20% = 800 800 Billing rate $70 $70 Total billings for 1-hour visits $56,000 $56,000 Total billings during the month $184,000 $184,000 Percentage of month's billings collected during June 10% 90% Collections during June $18,400 $165,600 Total collections in June $18,400 + $165,600 = $184,000 3. Overhead and administrative expense budget schedule for the month of June: Patient registration and records 4,000 visits x $2.00 per visit = $8,000 Other overhead and adminstrative expenses 2,400 hours x $5.00 per hour = 12,000 Total overhead and adminstrative expenses $20,000...
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