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<SUB-PART>
1.
<TO DETERMINE>
To determine: The overhead rate changed by Sierra university hospital changed on the
cotton roll.
Given,
Invoiced cost of cotton rolls as $ 2.40
Cost of processing of paperwork for purchase as 0.60
Supplies-room management fee as 0.70
Operating-room and patient-room handling costs as 1.60
Administrative hospital costs as 1.10
University teaching-related costs as 0.60
Malpractice insurance costs as 1.20
Cost of treating uninsured patients as 2.72
Profit component as 0.60
</TO DETERMINE>
<ANSWER>
</ANSWER>
<EXPLANATION>
Solution:
Overhead rate: It is the rate which is charged on per unit overhead utilized. Overhead
basically means the cost used on the product.
</EXPLANATION>
<CONCLUSION>
Conclusion:
</CONCLUSION>
</SUB-PART>
<SUB-PART>
2.
<TO DETERMINE>
</TO DETERMINE>
<EXPLANATION>
Solution:
</SUB-PART>
<SUB-PART>
3.
<TO DETERMINE>
To determine: the action which Meltzer should take for the cotton roll
</TO DETERMINE>
<EXPLANATION>
Solution:
Accepting that M’s insurance agency is in charge of paying the $4,800 charge,
Meltzer most likely can just express shock at the measure of the bill.
The purpose of this inquiry is to take note of that regardless of whether Meltzer
questions emphatically to at least one overhead things, it is his insurance agency
that presumable has the more noteworthy motivating force to challenge the bill.
Singular patients have next to no power in the medicinal field. Interestingly,
insurance agencies have impressive power and may choose that specific expenses
are not reimbursable– – for instance, the expenses of treating uninsured patients.
</EXPLANATION>
</SUB-PART>