Sentinel Health DataLabTM Access

Part 1: 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. Part 2: 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 Part 3 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