Explore BrainMass
Share

Explore BrainMass

    Valley View Hospital

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    * Attached picture is a scan of the full problem. I am looking for direction as to how to complete this problem. I am not very good with managerial accounting.

    Valley View Hospital has an outpatient clinic. Jeffrey Harper, the hospital's chief administrator, is very concerned about cost control and has asked that performance reports be prepared that compare budgeted and actual amounts for medical assistants, clinic supplies and lab tests. Past financial studies have shown that the cost of clinic supplies used is driven by the number of medical assistant labor hours worked, whereas lab tests are highly correlated with the number of patients served.

    The following information is available for June:

    © BrainMass Inc. brainmass.com October 9, 2019, 11:01 pm ad1c9bdddf
    https://brainmass.com/business/budgets/valley-view-hospital-241562

    Attachments

    Solution Preview

    Valley View Hospital has an outpatient clinic. Jeffrey Harper, the hospital's chief administrator, is very concerned about cost control and has asked that performance reports be prepared that compare budgeted and actual amounts for medical assistants, clinic supplies and lab tests. Past financial studies have shown that the cost of clinic supplies used is driven by the number of medical assistant labor hours worked, whereas lab tests are highly correlated with the number of patients served.

    The following information is available for June:

    * Lab Tests: Actual lab tests for June cost $159,027 and averaged 3.3 per patient. Each patient is anticipated to have three lab tests, an average budgeted cost of $65 per test.

    * Medical Assistants: Valley View's standard wage rate is $14 per hour, and each assistant is expected to spend 30 minutes with a patient. ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare a report that shows budgeted and actual costs for the 790 participants served during June.

    $2.19