Budget Allocation for Hospital Services: Food vs. Maintenance, Quizzes of Cost Accounting

Download Budget Allocation for Hospital Services: Food vs. Maintenance and more Quizzes Cost Accounting in PDF only on Docsity! M F SQ. FT. Meals Served Percents/Ratio S Surgery 20,000 40,000 Surgery S OB 30,000 30,000 OB U General Medicine 30,000 90,000 General Medicine U TOTAL 80,000 160,000 TOTAL U Amounts Allocated: 8,000,000 3,000,000 Food Services 10,000 30,000 Food Services Maintenance 10,000 10,000 Maintenance TOTAL 100,000 200,000 Direct Method ALLOCATED MAINTENANCE COSTS ALLOCATED FOOD SERVICE COSTS S Food Services 3,000,000.00 S Maintenance 8,000,000.00 U Surgery 2,000,000.00 750,000.00 U OB 3,000,000.00 562,500.00 U General Medicine 3,000,000.00 1,687,500.00 STEP METHOD - MAINTENANCE FIRST EXPECTED USE (RATE) ALLOCATED COST S Food Services 1/9 11% 888,888.89 S Maintenance U Surgery 2/9 22% 1,777,777.78 U OB 3/9 = 1/3 33% 2,666,666.67 U General Medicine 3/9 = 1/3 33% 2,666,666.67 TOTAL 1 100% 8,000,000.00 Food Services Allocated Amount 3,000,000.00 888,888.89 Surgery 1/4 25% 750,000.00 OB 1/5 18.75% 562,500.00 General Medicine 5/9 56.25% 1,687,500.00 TOTAL 1 100% 3,000,000.00 Adjusted Food Service Cost STEP METHOD - FOOD SERVICES FIRST EXPECTED USE (RATE) ALLOCATED COST S Food Services S Maintenance 1/17 6% 176,470.59 U Surgery 4/17 24% 705,882.35 U OB 3/17 18% 529,411.76 U General Medicine 9/17 53% 1,588,235.29 TOTAL 1 100% 3,000,000.00 Maintenance Allocated Amount 8,000,000.00 176,470.59 Surgery 1/4 25% 2,000,000.00 OB 3/8 37.50% 3,000,000.00 General Medicine 3/8 37.50% 3,000,000.00 TOTAL 1 100% 8,000,000.00 ALGEBRAIC/RECIPROCAL METHOD Maintenance = 9,144,722 Food Service = Maintenance: EXPECTED USE (RATE) ALLOCATED COST Surgery 20% 1,828,944.40 OB 30% 2,743,416.60 General Medicine 30% 2,743,416.60 TOTAL 80% 7,315,777.60 Food Service: EXPECTED USE (RATE) ALLOCATED COST Surgery 20% 921,000.00 OB 15% 690,750.00 General Medicine 45% 2,072,250.00 TOTAL 80% 3,684,000.00 Adjusted Maintenance Cost vo (2) service departments: Maintenance and Food Services. The hospital has mely: General Medicine, OB, and Surgery. ‘ollows: allocated: P 6,000,000 P 3,000,000 Costs are allocated based on square footassignedtothe unit. Costs are allocated based on number of meals served tothe unit. EXPECTED UTILIZATION RATES SQ.FT. Meals Served Services 10,000 30,000 enance 10,000 10,000 ay 20,000 40,000 30,000 30,000 ral Medicine 30,000 90,000 iL 100,000 200.000 cate the costs of the two (2) service departments with the three (3) patient care {, Step Method — Maintenance First, Step Method — Food Services First, and