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#12. Using the Step-Down Method for this problem. Now that you have calculated the new allocation rate for Accounting/Billing (use your choice from #11 -

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#12. Using the Step-Down Method for this problem. Now that you have calculated the new allocation rate for Accounting/Billing (use your choice from #11 - this will have to be rounded out to 3 digits). What is the amount of Accounting/Billing's related expense that you would allocate to the Routine Care Department? (Hint: round to the second decimal place) Choice A: $260,050 Choice B. $540,300 Choice C: $782,500 Choice D: $1.005.000 #13. Using the Step-Down Method for this problem. What would be the total expense for the Routine Care department (this is the addition of direct department expenses and allocated indirect costs). (Hint: round to the second decimal place) Choice A: S695,750 Choice B: $1.483,000 Choice C: $11.486,250 Choice D: $29.919.780 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 3,800,000 Space (square Feet) Number of Procedures 10,000 20,000 30,000 Routine Care (patient services) Intensive Care (patient services) Dagnostic 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 7000.000 26,000,000 29,800,000 125,000 100,000 75,000 300,000 330,000 500,000 450,000 100,000 1.350.000 1,350,000

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