#1. Using the direct allocation for this problem. Facilities has a total cost pool of $1,800,000. The cost driver has been determined to square footage. What would the allocation rate be for facilities? (Hint: round to the second decimal place) Choice A: Not enough information to tell. Choice B: $4.62 per square foot Choice C: $5.54 per square foot Choice D: $6.00 per square foot #2. Using the direct allocation for this problem. Accounting - Billing has a total cost pool of $2,000,000. The cost driver has been determined to number of procedures. What would the allocation rate be for Accounting/Billings? (Hint: round to the second decimal place) Choice A: $1.48 per procedure Choice B: $8.50 per procedure Choice C: $4.67 per procedure Choice D: $75,000,000 dollars #3. Now that you have calculated the allocation rate for facilities using the Direct Method. What is the amount of facilities related expense that you would allocate to the Routine Care Department? (Hint: round to the second decimal place) Choice A: $5.45 per square foot Choice B: $240,000 Choice C: $693,000 Choice D: $750,000

#4. Now that you have calculated the allocation rate for Accounting/Billing using the Direct Method. What is the amount of Accounting/Billings related expense that you would allocate to the Routine Care Department? (Hint: round to the second decimal place) Choice A: $540,000 Choice B: $740,000 Choice C: $855,000 Choice D: $912,500 #5. What would be the total expense for the Routine Care department using the Direct Method (this is the addition of direct department expenses and allocated indirect costs). (Hint: round to the second decimal place) Choice A: $850,005 Choice B: $9,875,000 Choice C: $10,000,000 Choice D: $11,490,000 #6. What should happen if you allocate indirect expenses properly? Choice A: The total allocated amount is the same as the beginning indirect total (within a range of less than 1%) Choice B: The amount allocated will always be substantially (>10%) greater than the beginning amount Choice C: The amount allocated will always be substantially ( Use the following information to answer the following questions Department Facilities (support dept) Accounting Billimg (s Total for Support Departments Revenues Expenses Space (square Feet) Number ofProcedures 1,800,000 ,000,000 3,800,000 10,000 20,000 30,000 Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services Total for Patient Service Departments Grant Total S 30,000,000 S $25,000,000 S $20,000,000 $ $ 10,000,000 9,000,000 7,000,000 26,000,000 29,800,000 125,000 100,000 75,000 300,000 330,000 500,000 450,000 400,000 1,350,000 1,350,000 75,000,000 S75,000,000 S S