• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

PQ Awards Nominations

Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

ABC (BECKLEY HILL)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › ABC (BECKLEY HILL)

  • This topic has 5 replies, 3 voices, and was last updated 3 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • October 26, 2015 at 8:59 am #278983
    susan
    Member
    • Topics: 3
    • Replies: 7
    • ☆

    Beckley Hill (BH) is a private hospital carrying out two types of procedures on patients. Each type of procedure incurs
    the following direct costs:
    Procedure A B
    $ $
    Surgical time and materials 1,200 2,640
    Anaesthesia time and materials 800 1,620
    BH currently calculates the overhead cost per procedure by taking the total overhead cost and simply dividing it by
    the number of procedures, then rounding the cost to the nearest 2 decimal places. Using this method, the total cost
    is $2,475·85 for Procedure A and $4,735·85 for Procedure B.
    Recently, another local hospital has implemented activity-based costing (ABC). This has led the finance director at BH
    to consider whether this alternative costing technique would bring any benefits to BH. He has obtained an analysis
    of BH’s total overheads for the last year and some additional data, all of which is shown below:
    Cost Cost driver $
    Administrative costs Administrative time per procedure 1,870,160
    Nursing costs Length of patient stay 6,215,616
    Catering costs Number of meals 966,976
    General facility costs Length of patient stay 8,553,600
    –––––––––––
    Total overhead costs 17,606,352
    –––––––––––
    Procedure A B
    No. of procedures 14,600 22,400
    Administrative time per procedure (hours) 1 1·5
    Length of patient stay per procedure (hours) 24 48
    Average no. of meals required per patient 1 4
    Required:
    (a) Calculate the full cost per procedure using activity-based costing.
    (b) Making reference to your findings in part (a), advise the finance director as to whether activity-based costing
    should be implemented at BH.

    It was asked in June 2015 diet. I would really appreciate it if i can get a solution. Thanks

    October 26, 2015 at 1:55 pm #279041
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51583
    • ☆☆☆☆☆

    We do not provide full solutions to full questions!

    What we do do is help with any problems.

    However, why on earth do you not download the solution directly from the ACCA website?

    October 26, 2015 at 3:17 pm #279074
    susan
    Member
    • Topics: 3
    • Replies: 7
    • ☆

    Lols!!! Thanks a lot Sir; I just did.

    October 26, 2015 at 5:03 pm #279096
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51583
    • ☆☆☆☆☆

    LOL 🙂

    I am pleased you found it OK.

    Do ask again if there is anything in the answer that you are not happy about 🙂

    July 2, 2019 at 12:11 pm #521650
    rama1992
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Hi Susan, could you kindly share the solution to this question or how you managed to download it fro the ACCA website?

    July 2, 2019 at 5:09 pm #521665
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51583
    • ☆☆☆☆☆

    rama1992: It would be illegal for Susan to share the answer with you because it is copyright of the ACCA.

    Given that you are presumably studying for the ACCA exams, do you never look at the ACCA website?

    Try going to accaglobal.com and then following the links to ‘students’ and then ‘study support resources’.

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • tobimillz100 on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • omarcham on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • ANISH1903 on Outsourcing, shared services and disruptive technologies – ACCA Strategic Business Leader (SBL)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy