28 Dec 1. The Housekeeping Department of
1. The Housekeeping Department of Micanopy Hospital has direct costs of $500,000. The hospital’s four patient service departments utilize the following amounts of space: Department A 1,000 square feet; Department B 2,000; Department C 3,000; Department D 4,000. Assuming that the cost driver for housekeeping costs is the amount of occupied space, what is the allocation of housekeeping costs to Department A?
a) $ 75,000 b)$ 150,000 c)$ 100,000 d)$ 50,000 e)$ 25,000
2. You work in a clinic with fixed costs of $300,000 and a variable cost per visit of $15. You are projecting 6,000 visits this year. What are your expected total costs?
a)$390,000 b)$90,000 c)$210,000 d)$4,500,000
3. Assume the following cost and revenue data for General Hospital:
Fixed costs = $15,000,000.
Variable cost per inpatient day = $250.
Revenue per inpatient day = $1,000.
What is the expected profit at a volume of 25,000 inpatient days?
4. Assume the following cost and revenue data for General Hospital:
Fixed costs = $15,000,000.
Variable cost per inpatient day = $250.
What revenue per inpatient day is required to obtain a profit of $1,000,000 at a volume of 25,000 patient days?
5.Consider the following data:
Fixed costs = $10,000,000.
Variable cost per inpatient day = $400.
What revenue per inpatient day is required to obtain a profit of $1,000,000 at a volume of 10,000 patient days?
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