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Assignments/Assessments:

 

Exercise

An OB/GYN Department is developing an RVU and product cost for the following procedures, given the projected volumes and sample direct costs. Projected total costs for the OB/GYN department are $12,000,000 ($7,000,000 in direct costs and $5,000,000 in indirect costs). 

 

Calculate the cost per procedure using Job-Order Costing.

 

 

 Projected

 Labor

 Supply

 Equipment

Procedure

 Volumes

 Expense ($)

 Expense ($)

 Use (min.)

 

 

 

 

 

Ultrasound

1,500

70

30

25

Hysteroscopy

3,000

40

20

25

HSG

4,000

25

15

15

SIS

5,400

20

5

10

 

For this problem, be sure to use the following steps:

1.   Calculate the RVU for each procedure.

2.   Calculate the total cost for each procedure.

  

Next, calculate the cost per procedure using Activity-Based Costing

1.   Calculate the direct RVU and the cost driver for each procedure.

2.   Calculate the total cost for each procedure

 

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