1) Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the allocation rate for the Financial Services cost pool allocated based on patient services revenues?

2) Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the allocation rate for the Financial Services cost pool allocated based on salary dollars?

3) Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. How much of the $2,000,000 financial services cost pool is allocated to Intensive Care?

4) Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. How much of the $1,000,000 financial services cost pool is allocated to Diagnostic Services?

5) Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the total of indirect costs allocated to Routine Services?

6) Assume that the hospital uses salary dollars as the cost driver for general administration and housekeeping labor hours as the cost driver for facilities. Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the total of indirect costs allocated to Other Services?

St. Benedict's Hospital has three support departments and four patient services departments The direct costs to each of the support departments are as follows: General Administration Facilities Financial Services $2,000,000 $5,000,000 $3,000,000 Selected data for the three support and four patient services departments are shown below: Patient Services Revenues Space (square feet) Housekeeping Labor Hours Salary Dollars Department Support General Administration Facilities Financial Services 10,000 20,000 15,000 45,000 2,000 $ 1,500,000 5,000 $3,000,000 3,000 $ 2,000,000 10,000 Total 6,500,000 Patient Services Routine Care Intensive Care Diagnostic Services Other Services Total $30,000,000 4,000,000 6,000,000 S 10,000,000 S50,000,000 $50,000,000 400,000 40,000 60,000 100,000 600,000 645,000 150,000 $ 12,000,000 30,000$ 5,000,000 15,000$ 6,000,000 25,000$ 7,000,000 220,000$ 30,000,000 230,000 $ 36,500,000 S Grand Total