Exibit 2 : Cost & patient visits in 1975 Exibit 3 ; Floor Space & lab usage by department

Floor Space
Department No. of patient visits Salary ($) Other ($) Given Department (sq. feet)
total
Pediatrics 5000 20000 8000 expense
28000 Pediatrics 1000
Family planning 10000 5000 15000 ($) 20000 Family planning 1300
Adult medicine 2100 30000 16000 (Salary+
46000 Adult medicine 1800
Others)
Nursing 4000 27000 6000 33000 Nursing 300
Mental Health 1400 15000 8000 23000 Mental Health 1000
Social services 1500 32000 8000 40000 Social services 500
Community health 2500 5000 10000 15000 Community health 1100
Dental 6400 20000 10000 30000 Dental 1000
Subtotal 32900 154000 235000 8000

Admistration 38000 2000 40000 Adminstration 500

Rent 36000 36000 Record keeping 300
Utilities 10000 10000 Laboratory 1200
Laboratory work 16000 9000 25000 10000
Cleaning 6000 6000
Record keeping 7000 3000 10000
Total 362000

No of patients visits 32900

Avg cost per visit 11

FOR THE FAMILY PLANNING DEPARTMENT

REMARKS Calculation backup
Total Patients 10000
Attended

Salary expense 5000

Salary Cost taken 1 nurse salary ($9000)Distributed between Family
from Nursing 4500 planning($4500) & Pediatrics($4500) evenly
department

Salary Cost taken
from Social Service 4965
department
Total Salary expense
2 MSW's social workers divide their 50% of their 12000 divided in ratio of no. of patients(10000/
salary($12000) in ratio of number of patients & one (32900-1500)*12000) + (8000/7)
BA social worker divides his salary($8000) evenly in 7
departments (except dental)
14465

Otherexpense 15000
Other expense taken Other expense of 1 nurse ($2000)Distributed between
from Nursing 1000 Family planning($1000) & Pediatrics($1000) evenly
department
3000 divided in ratio of no. of patients(10000/
2 MSW's social workers divide their 50% of their other (32900-1500))*3000 + (2000/7)
Other expense taken expense($3000) in ratio of number of patients & one
from Social Service 1241 BA social worker divides his other expense($2000)
department evenly in 7 departments (except dental)

Total Other expense 17241

Total Salary + other 31706

expenses

ADMINISTRATIVE RATIO OF SALARIES

COST: 3757 (14465/154000)*40000
RENT 5850 SQUARE FOOT BASIS (1300/8000)*36000
UTILITIES +
CLEANING SQUARE FOOT BASIS
2600 (1300/8000) )*(10000+6000)
(No. of hours x lab people salary/hour ) + (Other
cost X % lab time consumed)
LAB WORK HOUR BASIS 4X200 + (200/4000)*9000
1250
RECORD KEEPING 3040 RATIO OF PATIENTS (10000/32900) *10000

EFFECTIVE COST 48203

TOTAL PATIENTS: 10000
EFFECTIVE COST PER
PATIENT 4.82

CONCLUSION: As per new cost accounting method, Cost of Family planning department is $4.82 / Per patient.
But as per current cost accounting method Avg cost per patient for family planing department is shown as 11$.
So, we are bearing additional cost (6$ per patient) of Pedatrics,Adult medicine, Mental Health,Social services & Community health
deapartments.
Our earlier cost 110000
Calculation
Old given cost - new
Extra cost of other calculated cost
departments that (=110000-48203)
we are bearing 61797

Departments Per patient cost of departments incurring more than

$11/per patient cost

Distribution of our
extra cost among Ratio of per patient
other departments cost Calculation (Remarks)
Pediatrics 768 (=0.7/56.3 * 61797) Pediatrics 11.7
Adult medicine 39186 (=35.7/56.3 * 61797) Adult medicine 46.7
Mental health 16465 (=15/56.3 * 61797) Mental health 26
Social services 5159 (=4.7/56.3 * 61797) Social services 15.7
Community health 220 (=0.2/56.3 * 61797) Community health 11.2
Total sum 111.3
Lab usage
(hours/year)
1000
200
2400
100
0
0
100
200

0
0
0
4000
unity health

Per patient EXTRA

cost of
departments
incurring more
than $11/per
patient cost ( Per
patient cost - $11)

0.7
35.7
15
4.7
0.2
56.3
Exibit 2 : Cost & patient visits in 1975 Expenses
Department No. of patient visits Salary ($) Other ($) Given total expense ($) Salary change due to
(Salary+Others) nurses serving for other
departments

Pediatrics 5000 20000 8000 28000 4500

Family planning 10000 5000 15000 20000 4500
Adult medicine 2100 30000 16000 46000 9000
Nursing 4000 27000 6000 33000 -18000
Mental Health 1400 15000 8000 23000 0
Social services 1500 32000 8000 40000 0
Community health 2500 5000 10000 15000 0
Dental 6400 20000 10000 30000 0
Subtotal 32900 154000 235000

Admistration 38000 2000 40000

Rent 36000 36000
Utilities 10000 10000
Laboratory work 16000 9000 25000
Cleaning 6000 6000
Record keeping 7000 3000 10000
Total 362000

No of patients visits 32900

Avg cost per visit 11

Exibit 3 ; Floor Space & lab usage by department

Floor Space Lab usage

Department (sq. feet) (hours/year)
Pediatrics 1000 1000
Family planning 1300 200
Adult medicine 1800 2400
Nursing 300 100
Mental Health 1000 0
Social services 500 0
Community health 1100 100
Dental 1000 200
8000

Adminstration 500 0
Record keeping 300 0
Laboratory 1200 0
10000 4000

Rate of people working in

lab ($/hour) 4
Salary change due to Corrected salary Other expenses due to Other expense change Corrected Other expense Corrected total expense
Social workers serving for change in nurses working due to social workers (Corrected Salary +
other departments for other departements corrected other expense)

3054 27554 1000 763 9763 37317

4965 14465 1000 1241 17241 31706
1945 40945 2000 486 18486 59432
2672 11672 -4000 668 2668 14339
1678 16678 0 419 8419 25097
-18857 13143 0 -4714 3286 16429
2098 7098 0 525 10525 17623
2446 22446 0 611 10611 33057
154000 235000
Adminstration ($) Rent ($) Utilities +Cleaning ($) Recordkeeping ($) Department wise Actual Average actual
(% salary X (% sq ft X total rent) (% sq ft X Utility (% patients X Laboratory expense total cost per visit
Adminstration expense) expense) recordkeeping expense) ($) customer ($)
(No. of hours x lab service (actual total
people salary/hour ) departme expense / No
+ (Other cost X % lab ntal of patients)
time consumed) expense

7157 4500 2000 1520 6250 58744 11.7

3757 5850 2600 3040 1250 48202 4.8
10635 8100 3600 638 15000 97405 46.4
3032 1350 600 1216 625 21162 5.3
4332 4500 2000 426 0 36355 26.0
3414 2250 1000 456 0 23548 15.7
1844 4950 2200 760 625 28001 11.2
5830 4500 2000 1945 1250 48583 7.6
40000 36000 16000 10000 25000 362000

1800 0

4320 0

1080 0
Charge per patient($)
(Revenue / no. of
patients)

10.5
10.5
10.5
10.5
10.5
10.5
10.5
10.5