1) Village Health Clinic is non-profit outpatient facility that provides medical services to both fee-paying patients and low-income, governmented supported patients. Reimbursement from the government is based on total costs of services provided, including both direct costs of patient services and indirect operating costs. The clinic is organized into two operating departments (medical services and ancillary services*) and three support departments (administration,facilities, and lab services). Budgeted data for next year are presented below. There are four parts to this problem. Medical IT Services* Admin** Facilities** Services Ancillary Services Total Direct Costs $355,000 $725,000 $320,000 $930,000 $244,000 $2,574,000 Number of patient visits 6,180 2,955 9,135 Number of IT man hours 220 145 190 900 850 2,305 Number of employees 6 8 7 22 14 57 Number of square feet 2,200 1,600 1,800 9,500 2,700 17,800 allocated on the basis of estimated man hours allocated on the basis of number of employees *** allocated on the basis of number of square feet As the newly hired financial analyst, you have been asked to compute the budgeted cost per patient visit. (2 points) 2) Use the direct method to compute the budgeted cost per patient visit for Medical Services and Ancillary Services. (4 point Cost per patient visit Direct Costs IT Services Administration Facilities Total Cost per patient visit Medical Ancillary Services Services IT Services* Admin** Facilities* Medical Services Ancillary Services Total (2) Use the direct method to compute the budgeted cost per patient visit for Medical Services and Ancillary Services. (4 point (3) Cost per patient visit Direct Costs IT Services Administration Facilities Total Cost per patient visit Medical Ancillary Services Services Medical IT Services* Admin** Facilities** Services Ancillary Services Total Use the stepdown method to compute the cost per patient visit for Medical Services and Ancillary Services. The stepdown sequence is IT Services, Administration, and Facilities. (4 points) stepdown: IT, Admin, Fac IT Services* Admin** Facilities*** Medical Services Ancillary Total Services Direct Costs IT Services Administration Facilities Total Cost per patient visit (3) Use the stepdown method to compute the cost per patient visit for Medical Services and Ancillary Services. The stepdown sequence is IT Services, Administration, and Facilities. (4 points) (4) Medical stepdown: IT, Admin, Fac IT Services* Admin** Facilities*** Services Ancillary Services Total Direct Costs IT Services Administration Facilities Total Cost per patient visit Use the stepdown method to compute the cost per patient visit for Medical Services and Ancillary Services. The stepdown sequence is Administration, IT Services, and Facilities. (4 points) stepdown: Admin, IT, Fac Direct Costs Total Cost per patient visit Medical Services Ancillary Services Total