Sentinel Health DataLabTM Access
ASU Hospital is developing an RVU and product cost for the following CT procedures, given the projected volumes and sample direct cost. Projected cost for the CT department is $18 million ($11 million in direct cost and $7 million indirect cost).
Procedure Projected Volumes Labor Expense Supply Expense
A: CT Scan 2,000 $50 $35
B: Upper GI 3,000 $45 $30
C: Chest X-Ray 6,000 $35 $25
D: Hand X-Ray 8,000 $20 $10
Complete the following, showing your work/steps:
• Calculate the cost per procedure using job order costing.
• Using job-order costing, calculate the charge necessary to realize a 10 percent gain at the hospital.
Using the hourly method of setting charges, calculate the charge per modality necessary to recover total cost from ASU Hospital given that:
• Total projected cost per year of diagnostic imaging = $1,000,000
• Total projected hours of use per year = 43,000 hours
• Modality = 20 minutes
Using the surcharge method of setting charges, calculate the charge necessary to cover total cost for 450,000 admission kits for ASU Hospital given that:
• Overhead allocated to the admission kit projects = $60,000
• Total project cost of admission kits = $210,000