which patients above will be charged more under the new activity-based costing system?


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which patients above will be charged more under the new activity-based costing system? 1 answer below » In the past, Casiopia Hospital allocated all of its overhead costs to patients based on nursing time. Casiopia has decided to switch to an activity based costing system using three activity cost pools. Information related to the new system is as follows: Estimated Overhead Activity Cost Pool Activity Measure Cost Estimated Activity Registration Number of patients $75,000 1,000 patients Patient care Nursing time $900,000 150,000 hours Billing Number of bills $120,000 2,500 bills View complete question » In the past, Casiopia Hospital allocated all of its overhead costs to patients based on nursing time. Casiopia has decided to switch to an activity based costing system using three activity cost pools. Information related to the new system is as follows: Estimated Overhead Activity Cost Pool Activity Measure Cost Estimated Activity Registration Number of patients $75,000 1,000 patients Patient care Nursing time $900,000 150,000 hours Billing Number of bills $120,000 2,500 bills Data concerning two patients follows: Patient Nursing time Number of bills Wells 100 hours 2 Muncie 60 hours 3 To determine a price for its services, Casiopia Hospital takes the total cost assigned to a patient and multiplies that number by two. Compared to the old system, which patients above will be charged more under the new activity-based costing system? A) neither patient will be charged more B) Wells C) Muncie D) both Wells and Muncie View less » Jul 08 2014 12:39 PM

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