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
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