Output/Input Budget Vinyard Clinic has the following resource input information available for a routine physical examination. Each exam normally requires 0.75 hours of examining room time, including 30 minutes of nursing services, 15 minutes of physician services Each exam also utilizes one package of examination supplies costing $50 each. Including benefits, physicians earn $90/hour and nurses earn $35/hour. Variable overhead is budgeted at $15 per examining room hour and fixed overhead is budgeted at $8,000 per month. Required Prepare an output/input budget for October when 500 routine examinations are planned. Discuss some of the likely benefits to Vinyard Clinic of dedicating time to go through the budgeting process. VINYARD CLINIC Output/Input Budget For the Month of October Examining supplies Labor: Nursing services Physician services Variable overhead Fixed overhead Total budget

Output/Input Budget Vinyard Clinic has the following resource input information available for a routine physical examination. Each exam normally requires 0.75 hours of examining room time, including 30 minutes of nursing services, 15 minutes of physician services Each exam also utilizes one package of examination supplies costing $50 each. Including benefits, physicians earn $90/hour and nurses earn $35/hour. Variable overhead is budgeted at $15 per examining room hour and fixed overhead is budgeted at $8,000 per month. Required Prepare an output/input budget for October when 500 routine examinations are planned. Discuss some of the likely benefits to Vinyard Clinic of dedicating time to go through the budgeting process. VINYARD CLINIC Output/Input Budget For the Month of October Examining supplies Labor: Nursing services Physician services Variable overhead Fixed overhead Total budget

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 63E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...

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Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?
Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items: Next year, Palladium expects production to require 90,000 direct labor hours. Exercise 9-63 Flexible Budget for Various Levels of Activity Refer to the information for Palladium Inc. above. Required: 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. 2. Prepare an overhead budget that reflects production that is 15% higher than expected and for production that is 15% lower than expected.
Output/Input Budget Vinyard Clinic has the following resource input information available for a routine physical examination. Each exam normally requires 0.75 hours of examining room time, including 30 minutes of nursing services, 15 minutes of physician services • Each exam also utilizes one package of examination supplies costing $50 each. Including benefits, physicians earn $90/hour and nurses earn $35/hour. Variable overhead is budgeted at $15 per examining room hour and fixed overhead is budgeted at $8,000 per month. Required Prepare an output/input budget for October when 500 routine examinations are planned. Discuss some of the likely benefits to Vinyard Clinic of dedicating time to go through the budgeting process. VINYARD CLINIC Output/Input Budget For the Month of October Examining supplies Labor: Nursing services Physician services Variable overhead Fixed overhead Total budget
Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: Budgeted number of patient-visits Budgeted variable overhead costs: Supplies (@$5.50 per patient-visit) Laundry (@$8.50 per patient-visit) Total variable overhead cost Multiple Choice Budgeted fixed overhead costs: Wages and salaries Occupancy costs Total fixed overhead cost Total budgeted overhead cost The total overhead cost at an activity level of 7,700 patient-visits per month should be: о O $261,690 $251,890 $247,700 7,000 $237,900 $ 38,500 59,500 98,000 53,650 86,250 139,900 $ 237,900
Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: Budgeted number of patient-visits Budgeted variable overhead costs: Supplies (@$6.00 per patient-visit) Laundry (@$9.00 per patient-visit) Total variable overhead cost Budgeted fixed overhead costs: Wages and salaries Occupancy costs Total fixed overhead cost. Total budgeted overhead cost Multiple Choice The total overhead cost at an activity level of 8,400 patient-visits per month should be: O $280,800 $270,300 $267,900 7,700 $ 46,200 69,300 115,500 $257,400 54,900 87,000 141,900 $ 257,400
The pharmacy in a busy hospital uses pre-determined rates for absorbing total overheads, based on the budgeted number of prescriptions to be handled. A rate of $7 per prescription has been calculated, and the following overhead expenditures have been estimated at two activity levels. Total overheads Number of prescriptions $ 97,000 13,000 109,000 16,000 During a particular period fixed overheads were $45,000. Based on the data above, what was the budgeted level of activity in prescriptions to be handled during the period in question? A 13,000 B 15,000 C 16,000 D 33,333
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 2,200 machine-hours Variable overhead costs: Supplies Indirect labor Fixed overhead costs: Supervision Utilities Depreciation Total overhead cost Multiple Choice The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,100 machine-hours rather than 2,200 machine-hours? (Round your intermediate calculations to 2 decimal places.) O $54,560 $53,330 $52,770 $ 9,240 17,820 $52,080 15,300 5,600 6,600 $ 54,560
Grinzaid Home Nursing specializes in home nursing services. It bases its overhead on the flexible budget cost function of $33,000 + ($2.40 x labor hours). Normal volume is based on 12,000 labor hours. Standards call for 2 labor hours per patient visited.For the current period, the operating results were as follows: actual labor hours worked 11,400, patient visits 5,800, actual variable overhead costs $28,460, actual fixed overhead costs $31,950. How much of the budget variance is due to variable costs?
Use the Information below to answer the two questions that follow. A company provides delivery services and uses two activity measures for its costs: the miles driven and the number of customer order. For the most recent month, the company reported the following information: Actual $ 12,940 $ 22 per mile $ 13 per order Budgeted Fixed cost per month Varlable cost per mile Varlable cost per order $ 26 $ 12 Miles driven Customer orders Budgeted 74 480 Actual 64miles 460 orders Spending Varlance for total costs $203 Unfavorable Q. What was the company's budgeted fixed cost per month? ANS. S Q. What was the company's activity variance for the month? ANS. $ (Click to select) v
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,200 machine-hours Variable overhead costs: Supplies $16,640 Indirect labor 29,120 Fixed overhead costs: Supervision 15,400 Utilities 6,600 Depreciation 7,600 Total overhead cost $75,360 The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 3,100 machine-hours rather than 3,200 machine-hours?
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,100 machine-hours Variable overhead costs: Supplies $15,810 Indirect labor 27,900 Fixed overhead costs: Supervision 17,000 Utilities 6,500 Depreciation 7,500 Total overhead cost $74,710 The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 3,000 machine-hours rather than 3,100 machine-hours? Multiple Choice $72,650 $72,300 $73,300 $74,710
The Safe Clinic computes a cost of treating each patient. It allocates costs to departments and then applies departmental overhead costs to individual patients using a different budgeted overhead rate in each department. The following are budgeted for both departments in Safe Clinic for 2010: - Pharmacy Medical Records Department overhead cost RM225,000 RM300,000 No. of prescriptions filled (pharmacy) 80,000 - No. of patients visited (medical records) - 55,000 In June 2010, David Lim paid 2 visits to the clinic and had 4 prescriptions filled at the pharmacy. 1) Compute the budgeted departmental overhead rates for both departments. 2) Compute the total budgeted overhead cost applied to the patient, David Lim in June…