Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

0040/lake St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are: General Administration

image text in transcribed
image text in transcribed
0040/lake St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are: General Administration $211,940 Facilities 590,813 Financial Services 342,398 Selected data for the three support and four patient services departments are: Department Patient Services Space Revenue (Square Feet) Housekeeping Labor Hours Salary Dollars Support General Administration 1,127 230 149.910 Facilities 21,849 5,446 2,511,070 1,591 258 174.696 Financial Services Patient Services Routine Care 40,981 $3,203,462 401,557 16,690 2,669 1.289,382 557,362 4,441 Intensive Care Diagnostic Services Other Services 626,710 6,618 1.421 542,340 997.291 9,119 2,358 734,566 Assume that the hospital uses the step-down method for cost allocation, with salary dollars as the cost driver for general administration, housekeeping labor hours as the cost driver for facilities, and patient services revenue as the cost dideer far frondialisandices. Assumes that the camera administration Routine Care $3,203,462 40,981 16,690 1,289,382 Intensive Care 401,557 4,441 2,669 557,362 Diagnostic Services 626,710 6,618 1,421 542,340 Other Services 997,291 9,119 2,358 734,566 Assume that the hospital uses the step-down method for cost allocation, with salary dollars as the cost driver for general administration, housekeeping labor hours as the cost driver for facilities, and patient services revenue as the cost driver for financial services. Assume also that the general administration department provides the most services to other support departments, followed closely by the facilities department. The financial services department provides the least services to the other support departments. Given these data, what is the cost pool for facilities? (Enter your final answer in dollars. Do not enter the dollar sign or commas. For example, if your answer is $1,234, enter as 1234.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Airline Management Finance

Authors: Victor Hughes

1st Edition

1138610690, 978-1138610699

More Books

Students also viewed these Finance questions

Question

Distinguish between poor and good positive and neutral messages.

Answered: 1 week ago

Question

Describe the four specific guidelines for using the direct plan.

Answered: 1 week ago