Analyze the following scenario: Jump Hospital currently allocates all maintenance department costs based on departmental square feet. However, the manager of the pharmacy department has suggested that an ABC approach be used for the portion of the maintenance department costs that relate to repairing equipment. Her contention is that the pharmacy has relatively little equipment that breaks. However, it must subsidize many high-tech departments that require expensive equipment repairs. Using the tables below, calculate the maintenance cost assigned to the pharmacy using the existing method and using an ABC approach. Clearly label your calculations in your analysis. Respond to at least two of your classmates’ postings.
|
Maintenance Costs |
|||
|
Routine Maintenance |
Repairs |
Total |
|
| Volume (Square Feet) |
100,000 |
800 |
|
| Labor Hours |
10,000 |
4000 |
14,000 |
| Labor Cost/Hour |
$12.00 |
$18.00 |
$13.71 |
| Supplies |
$20,000 |
$80,000 |
$100,000 |
| Administration |
$15,000 |
||
|
Department Information |
|||
|
Pharmacy |
All Other Departments |
Total |
|
| Square Feet |
2,000 |
98,000 |
100,000 |
| Volume of Repairs |
3 |
797 |
800 |
| Hours of Repairs |
6 |
3,994 |
4,000 |
| Supplies Used for Repairs |
$200 |
$79,800 |
$80,000 |
For a custom paper on the above topic, place your order now!
What We Offer:
• On-time delivery guarantee
• PhD-level writers
• Automatic plagiarism check
• 100% money-back guarantee
• 100% Privacy and Confidentiality
• High Quality custom-written papers
Is this question part of your Assignment?
We can help
Our aim is to help you get A+ grades on your Coursework.
We handle assignments in a multiplicity of subject areas including Admission Essays, General Essays, Case Studies, Coursework, Dissertations, Editing, Research Papers, and Research proposals
Header Button Label: Get Started NowGet Started Header Button Label: View writing samplesView writing samples