In the past, Hypochondriac Hospital allocated all of its overhead costs to patients based on nursing time. Hypochondriac has decided to switch to an activity based costing system using three activity cost pools. Information related to the new system is as follows: Data concerning two patients follows: Compared to the old system, which of the two patients X and Y will be charged more overhead cost under the new activity-based costing system?
A)neither patient will be charged more
B)Patient X
C)Patient Y
D)both Patient X and Patient Y

Question

In the past, Hypochondriac Hospital allocated all of its overhead costs to patients based on nursing time. Hypochondriac has decided to switch to an activity based costing system using three activity cost pools. Information related to the new system is as follows:  Data concerning two patients follows:  Compared to the old system, which of the two patients X and Y will be charged more overhead cost under the new activity-based costing system?
A)neither patient will be charged more 
B)Patient X 
C)Patient Y 
D)both Patient X and Patient Y

Quizplus · Accepted Answer

The Answer of In the past, Hypochondriac Hospital allocated all of its overhead costs to patients based on nursing time. Hypochondriac has decided to switch to an activity based costing system using three activity cost pools. Information related to the new system is as follows:  Data concerning two patients follows:  Compared to the old system, which of the two patients X and Y will be charged more overhead cost under the new activity-based costing system?
A)neither patient will be charged more 
B)Patient X 
C)Patient Y 
D)both Patient X and Patient Y

In the Past, Hypochondriac Hospital Allocated All of Its Overhead