问答题

1.Beckley Hill (BH) is a private hospital carrying out two types of procedures on patients. Each type of procedure incurs the following direct costs:
BH currently calculates the overhead cost per procedure by taking the total overhead cost and simply dividing it bythe number of procedures, then rounding the cost to the nearest 2 decimal places. Using this method, the total costis $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 BHto consider whether this alternative costing technique would bring any benefits to BH. He has obtained an analysisof BH’s total overheads for the last year and some additional data, all of which is shown below:
Required: (b)Making reference to your findings in part (a), advise the finance director as to whether activity-based costing should be implemented at BH.(4 marks)