A non-participating physician provides services to a Medicare patient who has total charges of $100 (before Medicare’s limiting charge is applied). The physician does not accept assignment, charges the maximum allowable, and submits the claim to Medicare. Assume Medicare’s approved schedule for these services is $80. What is the maximum amount the physician is allowed to charge the patient? What is the Medicare portion of the physician payment (which Medicare sends to the patient)? What is the patient’s portion of the payment to the physician (net of the reimbursement from Medicare in the previous question)? Would the physician have been better off by accepting assignment on this case? Why or why not?
Why is the unreimbursed cost of Medicare most often not included as an element of community benefit?
In: Operations Management
For an EOQ ordering quantity of 750 units, an ordering cost of $5 per order, a holding cost of $10 per unit per year, and an annual demand of 900 units, what is the annual total cost for this value of Q?
In: Operations Management
The following is information related to X Company, a company that uses a standard cost system:
Standard cost card for 1 unit of Product A:
Direct materials – Raw Material A (1 kilogram @ $ 20/kg.) $ 20
Direct materials – Raw Material B (1 kilogram @$ 10/kg.) $ 10
Direct labour (1 hour @ $15/hr.) $ 15
Variable overhead (1 hour @ $ 5/hr.) $ 5
Fixed overhead (1 hour @ $ 10/hr.) $ 10
Total budgeted fixed overhead: $ 1,000
Budget total units of production: 100 units
Actual units produced 88 units
Actual costs incurred: Total
Direct materials – Raw Material A (130 kilograms $ 2,860
Direct materials – Raw Material B ( 60 kilograms) $ 660
Direct labour (100 hours) $ 1,600
Variable overhead (100 hours) $ 480
Fixed overhead $ 1,120
Required:
Prepare a 5-column analysis, with the columns as follows: Actual, Cost Variances, Flexible Budget, Volume Variance, Master Budget
Calculate the direct labour variances.
Calculate the two variable overhead variances.
Calculate the direct material variances..
In: Accounting
A customer purchased merchandise for $400 which cost the seller
$200. The customer was dissatisfied with some of the goods and thus
returned $100 worth and received a cash refund.
(a) What journal entries should the seller make when the
merchandise is sold and at the time of the return? Assume that the
seller uses a perpetual inventory system.
(b) If the seller uses a periodic inventory system, what entries
would be made?
In: Accounting
Beginning inventory, purchases, and sales for an inventory item are as follows:
Purchases Cost of Goods Sold Inventory
Event Unit Cost Total Cost Unit Cost Total Cost Total Cost QTY Bought Qty sold Qty Unit Cost
Beginning Inventory 150 755
First Sale 120
First Purchase 400 785
Second Sale 200
Second Purchase 300 805
Sale 290
The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year
A. What is the total cost of ending inventory according to FIFO?
B. What is the cost of ending inventory according to LIFO?
C. What is the cost of ending inventory using weighted average cost. Round to the nearest dollar.
In: Accounting
The following are the transactions for the month of July.
Units Unit Cost Unit
Selling Price
July 1 Beginning Inventory 59 $ 10
July 13 Purchase 295 13
July 25 Sold ( 100 ) $ 15
July 31 Ending Inventory 254
Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under (a) FIFO, (b) LIFO, and (c) weighted average cost. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places and your final answers to nearest whole dollar amount.)
In: Accounting
A.
|
A fixed asset is classified as 5-year MACRS property and has an initial cost of $41,000 What is the aftertax cash flow from the sale of this asset if the pre-tax salvage value at the end of year 3 is $17,500 and the tax rate is 34 percent? |
| Year |
Five-Year Property Class |
|
| 1 | 20.00 | % |
| 2 | 32.00 | |
| 3 | 19.20 | |
| 4 | 11.52 | |
| 5 | 11.52 | |
| 6 | 5.76 | |
$15,439.38
$15,558.04
$15,564.72
$15,463.06
B.
|
A firm has sales for the year of $95,500, costs of $48,500, and taxes of $19,000. What is the operating cash flow for the year? |
$21,000
Answer cannot be determined from the information provided.
$28,000
$32,000
In: Finance
part 1. With a 25% mark up on selling price and a cost of $270, what is the selling price?
part 2. If the mark up on a product is 80% of selling price, what is the equivalent markup on cost?
part 3. With a product cost of $6, what should the selling price be to produce a 20% markup on selling price?
part 4. If a product now selling for $1000 was first marked up by the seller 50% on cost, what did the product originally cost the seller?
In: Accounting
The table shows the Hornet nation’s demand for stingers. The marginal cost of stingers for each seller is $10. If there are six sellers of stingers in Hornet and if they collude, then what will be the price and quantity of each seller?
|
Quantity |
Price |
Total Revenue |
|
0 |
$20 |
$0 |
|
10 |
$18 |
$180 |
|
20 |
$16 |
$320 |
|
30 |
$14 |
$420 |
|
40 |
$12 |
$480 |
|
50 |
$10 |
$500 |
|
60 |
$8 |
$480 |
|
70 |
$6 |
$420 |
|
80 |
$4 |
$320 |
|
90 |
$2 |
$180 |
|
100 |
$0 |
$0 |
In: Economics
What is the effective cost of a $300,000 fixed rate mortgage loan at 5.0% for 30 years if the lender charges two points? Assume the loan is held until maturity.
Select one:
a. 5.33%
b. 5.0%
c. 5.25%
d. 5.18%
In: Finance