Question: Explain a key difference in the interpretation
Explain a key difference in the interpretation of the ABC data in Exhibit 5–7 (Patio Grill Company) and Exhibit 5–16 (Delaware Medical Center).
Exhibit 5-7:
Exhibit 5-16:
Transcribed Image Text:
E Microsoft Excel - Activity-Based Costing Data and Calculations E Ele Edit View Irsert Fgrmat Iools Data Window Help Type a question for help E6 A =B6/D6 A B F G 1 Product Activity Cost Cost Activity Activity Cost Driver Cost for Line Cost Cost Driver Pool Product Quantity for Product Production per Unit Activity Pool Driver Quantity Rate Line Product Line Line Volume of Product $ 1.242.000 Machine 6 Machine 7 Related 10.000 $ 8,000 230.000$ STD DEL 100,000 $ 540.000 96,000 34.000 5.40 54.00 Hours 518,400 64.80 ULT 183.600 2.000 91.80 Total 230,000 1,242,000 10 Setup 210.000 Production 200 1.050.00 8.40 10.50 STD 80 84,000 10.000 11 Runs DEL 80 84,000 8.000 12 ULT 40 42,000 2,000 21.00 13 Total 200 210,000 14 Purchasing 15 16 300,000 Purchase Orders 100,000 96, 600 500.00 STD 200 10,000 10.00 DEL 192 8,000 ULT 208 104,000 2.000 52.00 17 Total 600 300,000 340,000 Production 200| 1,700.00 18 Material 19 Handling 20 STD 80 136.000 10,000 13.60 Runs DEL 80 136,000 8,000 17.00 ULT 40 68,000 2,000 34.00 21 Total 200 340,000 22 Quality 23 Assurance 110,000 Inspection Hours 2,200 50.00 STD 800 40.000 10,000 4.00 DEL 800 40,000 8,000 5.00 24 ULT 600 30,000 2,000 15.00 25 Total 2,200 110,000 26 Packing 27 Shipping 28 264.000 Shipments 2,200 120.00 STD 1,000 120,000 10,000 12.00 8,000 2,000 DEL B00 96,000 12.00 ULT 400 48,000 24.00 29 Total 2,200 264,000 30 Engineering 31 Design 32 130,000 Engineering Hours 1,300 100.00 STD 500 50,000 10,000 5.00 DEL 400 40,000 8,000 5.00 ULT 400 40,000 2,000 20.00 33 Total 1,300 130,000 34 Facility 35 2,300,000 Machine Hours 230,000 10.00 STD 100,000 1,000,000 10,000 100.00 DEL 96,000 960,000 8,000 120.00 36 ULT 34,000 340,000 2,000 170.00 37 Total 230,000 2,300,000 38 39 Grand Total $ 4,896,000 Grand Total $4,896,000 Sheeti / Sheet2 Sheet3 14 4 Ready Microsoft Excel - Activity Based Costing Analysis - Delaware Medical Center Ee Eat yew sert Fermat Toos Data ndo eo E6 Type a queton fr help A B C DE F G H K Activity Cost per Visit Patient of J Activity Patient Quantity for Cost for Patient Туре Cost Driver Patient Activity Cost Pool Cost Driver Pool Quantity Rate Туре Patient Cost Driver Visit Activity 5 6 Physician 7 Time Туре Visit Type Volume Each Type 5 960.000 Physician Minutes With Patient 240,000 54.00 Routine Extended B0.000 |$ 320,000 400,000 240,000 960,000 8,000 5 5,000 2,000 40.00 80.00 120.00 100.000 60,000 Complex Total 240,000 90,000 NP Minutes With Patient 12,000 10.000 8,000 1,200 500 320 10 Nurse 30,000 3.00 Routine Extended 36,000 30,000 24,000 30.00 11 Practitioner 12 (NP) Time 13 14 Intern or 15 Resident 16 (UR) Time 17 18 Registered 60.00 Complex 75.00 Total 30,000 90,000 412.500 IR Minutes With Patient 3.30 Routine Extended Complex 132,000 165,000 33.00 66.00 115.50 125,000 40,000 50,000 35,000 4,000 2,500 1,000 115,500 Total 125.000 412,500 245,200 Routine 281,900 RN Minutes With Patient 13,200 8,000 3,320 11.50 11.50 11.50 1.15 132,000 151,000 92,000 38,180 19 Nurse Extended 80,000 20 RN) Time Complex 33,200 21 Total 245.200 22 Clerical Tim 23 New 24 Patients 135,300 New Patient Visits 781,980 79,200 33,000 12.300 11.00 Routine Extended 7,200 3,000 7,200 3,000 2,100 11.00 11.00 11.00 Complex 2,100 23,100 135,300 25 26 Clerical Tim 27 Continuing 28 Patients Total 12,300 61,100 Continuing Patient Visits 12.220 Routine Extended Complex Total 76,960 0.50 Routine Extended Complex Total 24,520 10.00 Routine Extended Complex Total 5.00 6,000 5,000 1,220 30,000 25,000 6,100 61,100 13,200 12,000 13,280 6,000 5,000 1,220 5.00 5.00 5.00 29 12.220 30 Billing 31 32 33 34 Facility 35 36 37 38,480 Billing Lines 26,400 24,000 13,200 8,000 3,320 1.00 1.50 4.00 26.560 76.960 38,480 245,200 Patient Visits (Both New & Continuing) 13,200 132,000 80,000 33,200 13,200 8,000 3,320 10.00 10.00 10.00 8,000 3,320 24.520 245,200 38 39 Grand Total $2.224.560 Grand Total $2.224,560 Sheetl/ Sheet2 / Sheet3 / Ready 234 5678
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