Cost Accounting help and review for corrections

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Q.2

Cost=Total time*CPM
Calculate the cost per minute for each type of employee
Position Annual Salary Annual Salary Per employee Daily Salary* Hourly rate* Minute rate CPM
OB/GYN( 3 people in all) 35,403,451 11,801,150 48,564 5,781 96.36 33.73
Pediatrician( 4 people in all) 23,477,139 5,869,285 24,153 2,875 47.92 16.77
Midwife/Nurse 114,557 114,557 471 56 0.94 0.33
Resident * 231,841 231,841 954 60 0.99 0.66
Registration Clerk 9,092 9,092 37 4 0.07 0.03
Practical Nurse 7,122 7,122 29 3 0.06 0.02

Q.4

Cost per Minute for Employees
Overhead Cost Per Patient Position Total Time (Minutes) Salary Cost per Minute
Cost Driver L1 L2 L3 Total Overhead Cost Per Patient OB/GYN 147 $ 35,403,451.00 $ 240,839.80
Length of Stay 2538.78 2538.78 3385.04 $ 8,462.60 Paediatrician 169 $ 23,477,139.00 $ 138,917.98
Registration Clerk Min 25.37 25.37 35.4 $ 86.14 Midwife/Nurse 4444 $ 114,557.00 $ 25.78
No. of Patients 159.01 159.01 159.01 $ 477.03 Resident 877 $ 231,841.00 $ 264.36
Total cost 2723.16 2723.16 3579.45 $ 9,025.77 Registration Clerk 146 $ 9,092.00 $ 62.27
Practical Nurse 308 $ 7,122.00 $ 23.12
Cost driver by Length of Stay
Annual Overhead Item Total cost Level of care Total Ave days. Per Patient/Day Costs per Patient
in hospital Total Costs Total Costs per patient = total costs of services/Total number of patients
Utilities 7,454,026 L1 12,480 $ 10,561,324.80 Total costs= $105,314,225.37
Rent 16,195,458 L2 720 $ 609,307.20 Total Patients=11,975
Housekeeping 206,241 L3 1,560 $ 1,320,165.60 Therefore, total costs per patient $ 8,794.51
Laundry 395,295 Total natural born babies 14,760 846.26 $ 12,490,797.60
Information Technology 6,119,349 Price per Patient
Dining Hall 856,684 Price per Patient is calculated by dividing the total income from patients by the number of patients
Total overhead cost 31,227,053 With a total income of $49,756.50 and a customer base of 11,975, the price per patient=49756.50/11975
Natural born babies 12,490,821 $ 4.16
Annual Overhead Item Total cost Total minutes of Time per Cost per minute
Registration Clerk Registration Clerk delivery (min) Total Costs
General and Administrative 314,622 L1 178880 105539.2
Natural born babies 125848.8 L2 10320 6088.8
L3 23400 13806
Natural born babies 212600 0.59 125434
Cost Driver by No. of Patients
Overhead Item Total Cost Level of care No. of new born Cost Per level of care
babies patient
Equipment Depreciation 363,672 L1 4160
Insurance 233,991 L2 240
Security 302,076 L3 390
Grounds keeping 898,940 ttl Newborn babies 4790 159.01
Marketing 105,412
Total Overhead Costs 1,904,091
Total Newborn babies 761636.4
Maternity Staff Time
Position Level 1 Level 2 Level 3 Total
OG/GYN 30 37 80 147
Pediatrician 43 55 71 169
Midwife/Nurse 1422 1422 1600 4444
Resident 225 240 412 877
Registration Clerk 43 43 60 146
Practical Nurse 99 99 110 308
Total Direct Labor Time 6091