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#10. Using the Step-Down Method for this problem. After the allocation of Facilities to the Accounting/Billing department - what would be the new cost pool

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#10. Using the Step-Down Method for this problem. After the allocation of Facilities to the Accounting/Billing department - what would be the new cost pool for the Accounting /Billing Department? (Hint: round to the second decimal place) Choice A: $2.112.600 Choice B: $3,000,0000 Choice C: $5,000,000 Choice D: $100,000,000,000 (Hint - this is not the correct answer) 11. Using the Step-Down Method for this problem. Accounting - Billing has a total cost pool of $2,112,600. The cost driver has been determined to number of procedures. What would the allocation rate be for Accounting/Billings? (Hint: round to the third decimal place) Choice A: $11.31 per procedure Choice B: $1.565 per procedure Choice C: $3.32 per procedure Choice D: $8.00 per procedure Using the same numbers as we will calculate using the Step-Down Method. In this example, it has been determined to step-down Facilities expenses to the rest of the support departments and to the direct or patient service areas. Revenues Department Facilities (support dept) Accounting - Billing support dept) Total for Support Departments Expenses $ 1,800,000 $ 2,000,000 S 3.800.000 Space (square Feet Number of Procedures 10,000 20.000 30,000 Routine Care (patient services) Intensive Care (patent services) Dugnostic Services (patient services) Total for Patient Service Departments Grant Total $ 30,000,000 $ $ 25,000,000 $ $ 20,000,000 $ $ 75,000,000 $ $ 75,000,000 $ 10,000,000 9,000,000 2.000.000 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 Using the same numbers as we will calculate using the Step-Down Method. In this example, it has been determined to step-down Facilities expenses to the rest of the support departments and to the director patient service areas. Revenues Department Facilities (support dept) Accounting - Billig (support dept) Total for Support Departments Expenses $ 1,800,000 $ 2,000,000 S 3,800,000 Space (square Feet) Number of Procedures 10,000 20,000 30,000 Routme Care (patient services) Intensive Care (patient services) Dugnostic Services (patient services) Total for Patient Service Departments Grant Total $ 30,000,000 $ $ 25,000,000 $ $ 20,000,000 $ $ 75,000,000 $ S 75,000,000 $ 10,000,000 9,000,000 7,000,000 26,000,000 29,800,000 125,000 100,000 75,000 300,000 3.30,000 500,000 450,000 400,000 1,350,000 1,350,000

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