how many patient days are available at regis place 641312

(OH allocation using cost drivers) Regis Place is a health care facility that has been allocating its overhead costs to patients based on number of patient days. The facility’s overhead costs total $3,620,400 per year and the facility (which operates monthly at capacity) has a total of 60 beds available. (Assume a 360 day year.) The facility’s accountant is considering a new overhead allocation method using the following information:

Cost

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Cost Driver

Quantity

Rooms (depreciation, cleaning, etc.)

$ 504,000

# of rooms (25 double)

35

Laundry

151,200

# of beds

60

Nursing care

1,314,000

# of nurse hours annually

43,800

Physical therapy

960,000

# of hours of rehab

8,000

General services

691,200

# of patient days

Rooms are cleaned daily; laundry for rooms is done, on average, every other day.

a. How many patient days are available at Regis Place?

b. What is the overhead rate per patient day? (Round to the nearest dollar.)

c. Using the individual cost drivers, what is the overhead rate for each type of cost? (Round to the nearest dollar.)

d. Assume a patient stayed at Regis Place for six days. The patient was in a single room and required 30 hours of physical therapy. What overhead cost would be assigned to this patient under the current method of overhead allocation? What overhead cost would be assigned to this patient under the ABC method of over head allocation?

e. Assume a patient stayed at Regis Place for six days. The patient was in a double room and did not require any physical therapy. What overhead cost would be assigned to this patient under the current method of overhead allocation? What overhead cost would be assigned to this patient under the ABC method of over head allocation?

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