Question

In: Accounting

Apply the Concepts A pediatric ward in a metropolitan hospital has the following information: Resources Cost...

Apply the Concepts

A pediatric ward in a metropolitan hospital has the following information:

Resources Cost of Resources Activities Nursing hours
Supervision $80,000 Supervising nurses 2,000
Supplies and uniforms 40,000 Treating patients 5,000
Salaries 500,000 Providing hygienic care 4,000
Computer 15,000 Responding to requests 6,000
Monitor 30,000 Monitoring patients 3,000
Total $665,000 20,000
  • Monitors are used only for the monitoring activity
  • The one computer is used 1,200 hours for supervisory work and 800 hours for monitoring work
  • The nursing resources (supplies, uniforms, and labor) are assigned to activities using nursing hours. The nursing supervisor spends 100 percent of her time on supervision.

Required:

1. Fill in the following table that represents the work distribution matrix for the pediatric ward (if an amount is zero, enter "0"):
Percentage of Time on Each Activity
Activity Supervisor Nurses
Supervising nurses % %
Treating patient % %
Providing hygienic care % %
Responding to requests % %
Monitoring patients % %
2. Select all resources where driver tracing is used to assign costs to activities:
3. Calculate the cost of each activity:
Activities Cost
Supervising nurses $
Treating patients
Providing hygienic care
Responding to requests
Monitoring patients
4. Select all the activities that are secondary activities:
5. Calculate the final cost of each activity below, assuming the cost of secondary activities is assigned to primary activities in proportion to the labor content of primary activities (if an amount is zero, enter "0"; round to the nearest dollar):
Activities Final cost
Supervising nurses $
Treating patients
Providing hygienic care
Responding to requests
Monitoring patients

Solutions

Expert Solution

1 Fill in the following table that represents the work distribution matrix for the pediatric ward (if an amount is zero, enter "0"):
Percentage of Time on Each Activity
Activity Supervisor Nurses
Supervising nurses 100% 0%
Treating patient % 25.00%
Providing hygienic care % 20.00%
Responding to requests % 30.00%
Monitoring patients % 15.00%
2 Select all resources where driver tracing is used to assign costs to activities:
Activity Monitor Computer Nursing Resources
Supervising nurses
Treating patient
Providing hygienic care
Responding to requests
Monitoring patients
3 Calculate the cost of each activity:
Activities Monitor Computer Nursing Resources Total Cost
Supervising nurses 9000 84000 93000
Treating patients 135000 135000
Providing hygienic care 108000 108000
Responding to requests 162000 162000
Monitoring patients 30,000 6000 81000 87000
4 Select all the activities that are secondary activities:
Supervising  is a secondary Activities and its costs are consumed by primary activities
5 Calculate the final cost of each activity below, assuming the cost of secondary activities is assigned to primary activities in proportion to the labor content of primary activities (if an amount is zero, enter "0"; round to the nearest dollar):
Activities Final cost
Supervising nurses 0
Treating patients 135000
Providing hygienic care 108000
Responding to requests 162000
Monitoring patients 87000


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