Healthy Solutions, Inc What Is the Capacity Cost Rate? (Round the Answer to System

question 164

Multiple Choice

Healthy Solutions, Inc., is considering a time-driven activity based costing system. The following data is given: $$\begin{array} { l r l c } \text { Resources } &&{ \text { Activities } } & \text { Timeper activity } \\\hline \text { Supervision } & \$ 93,000 & \text { Treating patients } & 1.50 \mathrm { hr } \\\text { Supplies and uniforms } & 125,000 & \text { Providing hygienic care } & 2.00 \mathrm { hr } \\\text { Salaries } & 542,500 & \text { Responding to requests } & 1.10 \mathrm { hr } \\\text { Computer } & 15,000 & \text { Monitoring patients } & 1.35 \mathrm { hr } \\\text { Monitor } & 35,750 & & \\\text { Total } & \$ 811,250 & & \\\text { Total nursing hours } & 25,250 & & \\\text { (practical capacity) } & &\end{array}$$ What is the capacity cost rate? (Round the answer to two decimal places.)

• A)$3.60 per hour
• B)$22.5 per hour
• C)$32.13 per hour
• D)$94.5 per hour

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Definitions:

Continuous Variable

A variable that can take an infinite number of values within a given range, allowing for any value in the range, including fractions and decimals.

Normal Distribution

A bell-shaped frequency distribution curve that is symmetrical about the mean, representing the distribution of many types of data.

Normally Distributed

A dataset is normally distributed when it forms a symmetrical, bell-shaped curve around the mean, following the normal distribution pattern.

Standard Deviation

A gauge for the amount of distribution or variation present in a sequence of numbers.