Writing requirements

Writing requirements in Microsoft Excel

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Assignments/Assessments:

Exercise

An OB/GYN Department is developing an RVU and product cost for the following procedures, given the projected volumes and sample direct costs. Projected total costs for the OB/GYN department are $12,000,000 ($7,000,000 in direct costs and $5,000,000 in indirect costs). 

Calculate the cost per procedure using Job-Order Costing.

	Projected	Labor	Supply	Equipment
Procedure	Volumes	Expense ($)	Expense ($)	Use (min.)
Ultrasound	1,500	70	30	25
Hysteroscopy	3,000	40	20	25
HSG	4,000	25	15	15
SIS	5,400	20	5	10

For this problem, be sure to use the following steps:

1.   Calculate the RVU for each procedure.

2.   Calculate the total cost for each procedure.

  

Next, calculate the cost per procedure using Activity-Based Costing

1.   Calculate the direct RVU and the cost driver for each procedure.

2.   Calculate the total cost for each procedure

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