Question
1. 1. Prepare a table that distributes each of the costs listed in the preceding table to the hospitals divisions. (see info below) Rocky Mountain
1. 1. Prepare a table that distributes each of the costs listed in the preceding table to the hospitals divisions. (see info below)
Rocky Mountain General Hospital serves three counties in Colorado. The hospital is a nonprofit organization that is supported by patient billings, county and state funds, and private donations. The hospitals organization is shown in the following chart.
The following table shows the cost allocation bases used to distribute various costs among the hospitals divisions.
The following table shows the cost allocation bases used to distribute various costs among the hospitals divisions.
| Cost Pool | Cost Allocation Base | Annual Cost | |||||||
| Facilities: | |||||||||
| Building depreciation | Square feet of space | $ | 198,000 | ||||||
| Equipment depreciation | |||||||||
| Insurance | |||||||||
| Utilities: | |||||||||
| Electricity | Cubic feet of space | 32,000 | |||||||
| Waste disposal | |||||||||
| Water and sewer | |||||||||
| Cable TV and phone | |||||||||
| Heat | |||||||||
| General administration: | |||||||||
| Administrator | Budgeted number of employees | 228,000 | |||||||
| Administrative staff | |||||||||
| Office supplies | |||||||||
| Community outreach: | |||||||||
| Public education | Budgeted dollars of patient billings | 48,000 | |||||||
| School physical exams | |||||||||
Shown below are the amounts of each cost allocation base associated with each division.
| Square Feet | Cubic Feet | Number of Employees | Patient Billings | ||||||||||
| General Medicine Division | 15,360 | 172,800 | 35 | $ | 2,610,000 | ||||||||
| Surgical Division | 9,600 | 115,200 | 15 | 1,305,000 | |||||||||
| Medical Support Division | 13,440 | 100,800 | 15 | 435,000 | |||||||||
| Administrative Division | 9,600 | 91,200 | 35 | 0 | |||||||||
| Total | 48,000 | 480,000 | 100 | $ | 4,350,000 | ||||||||
 | |||||||||||||
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