The Eaton Clinic computes a cost of treating each patient. It allocates costs to departments and…
The Eaton Clinic computes a cost of treating each patient. It allocates costs to departments and then applies departmental overhead costs to individual patients using a different budgeted overhead rate in each department. Consider the following predicted 20X0 data for two of Eaton’s departments: 3. At the end of 20X0, actual overhead costs were as follows: Pharmacy ….. $240,000 Medical records .. $305,000 The pharmacy filled 82,000 prescriptions, and the clinic had 65,000 patient visits during 20X0. Compute the overapplied or underapplied overhead in eachdepartment.