help me please

Damex

 

Damex medical centre which operates three clincs is in the process of preparing its budget for the coming financial year.  Budgeted information for the coming year is as follows:

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General unallocated costs:

Staff pension                                                                                        $50,000

Depreciation – Equipment                                                          $36,000

          – Motor Vehicles                                                 $48,000

 

The following additional information is available on each clinic for the same period:

                                                                                  South Clinic                  North Clinic                  Central Clinic

Direct Allocated Overheads:

Insurance                                                                     $20,000                        $24,000                        $12,000

Heating and Lighting                              $20,000                        $30,000                        $10,000

 

Fixed Assets:

Equipment                                                       $120,000                                  $160,000                                  $80,000

Motor Vehicles                                      $160,000                                  $200,000                                  $120,000

 

Patients and Income Levels:

Number of patients treated                       2,000                           3,000                           1,000

Income                                                            $500,000                                  $550,000                                  $220,000

 

Number of Employees:

Doctors                                                            4                                             4                                             2

Nurses                                                             3                                             4                                             2

Medical assistants                                              2                                             3                                             1

 

Additional information:

(i)              Each doctor is paid a salary of $50,000 per annum; each nurse is paid $25,000 per annum and each medical assisant is paid $15,000 per annum.

(ii)            The unallocated costs should be apportioned as follows:

        Staff pension should be based on the number of employees;

        Depreciation of Equipment should be based on the value of equipment

        Depreciation of Motor Vehicles should be based on the value of motor vehicles.

 

Required:

(a)    Produce a report for management showing:

(i)              The total cost of operating each clinic.

(ii)            The profit or loss made by each clinic.

(iii)           The profit per patient for each clinic.

(b)    Comment on the importance of the report you have presented above.  Your comments should highlight any weaknesses in your report.