Author Question: Which of the following applications of the rules of debit and credit is true? a. decrease Prepaid ... (Read 54 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
Which of the following applications of the rules of debit and credit is true?
 a. decrease Prepaid Insurance with a credit and the normal balance is a credit
  b. increase Accounts Payable with a credit and the normal balance is a debit
  c. increase Equipment with a debit and the normal balance is a debit
  d. decrease Cash with a debit and the normal balance is a credit

Question 2

Health Care County Hospital uses an indirect job-costing system for all patients. In June, the budgeted nursing care charges for each department and budgeted allocation bases of nursing days are as follows:
 
  June Critical Care Special Care General Care
  Budgeted nursing costs 2,480,000 1,644,000 1,280,400
  Budgeted nursing days 5,000 4,000 8,000
 
  Patient Ms. Pinto spent six days in critical care, eight days in special care. She was shifted back to critical care due to an emergency for 6 days and finally the remainder of the month was spent in general care.
 
  Required:
  a. Determine the budgeted overhead rate for each department.
  b. What are the total charges to Ms. Pinto if she was in the facility the entire month?



dominiqueenicolee

  • Sr. Member
  • ****
  • Posts: 314
Answer to Question 1

c

Answer to Question 2

Answer:
a. Overhead rate critical care = 2,480,000/5,000 nursing days = 496.00 per day
Overhead rate special care = 1,644,000/4,000 nursing days = 411.00 per day
Overhead rate general = 1,280,400/8,000 nursing days = 160.05 per day

b. Ms. Graves:
Critical care 496.00  6 days = 2,976.00
Special care 411.00  8 days = 3,288.00
Critical care 496.00  6 days = 2,976.00
General care 160.05  10 days = 1600.50
Total overhead charges 10,840.50



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

For a complete list of videos, visit our video library