The fixed costs of operating the maintenance facility of General Hospital are $4,500,000 annually. Variable costs are incurred at the rate of $30 per maintenance-hour. The facility averages 40,000 maintenance-hours a year. Budgeted and actual hours per user for 2017 are as follows:
| Budgeted hours | Actual hours |
| Building and grounds | 10,000 | 12,000 |
| Operating and emergency | 8,000 | 8,000 |
Assume that budgeted maintenance-hours are used to calculate the allocation rates.
Required:
a. If a single-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department?
b. If a single-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage?
c .If a dual-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department?
d. If a dual-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage? Based on budgeted usage for fixed operating costs and actual usage for variable operating costs?
Inhaled General Anesthetics
Injectable General Anesthetics
How to use L’Hospital’s Rule to find the limit of a function (Part 1)
Power-tower in Southern California, largest such facility in the world
Lakeridge Health Oshawa is a 423 beds hospital with 463 doctors and 4058 staff comprised of ...
General model of the association of histones and DNA to form nucleosomes