Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4.5 5. Refer to problem 4. Assume that the three patient services departments are Adult Services, Pediatric Services, and Other Services. The patient services revenue

4.5 5. Refer to problem 4. Assume that the three patient services departments are Adult Services, Pediatric Services, and Other Services. The patient services revenue and hours of housekeeping services for each department are as follows: a. C. Department Adult Services Pediatric Services Other Services Total d. b. What is the dollar allocation to each patient services department if hours of housekeeping support are used as the cost driver? What is the dollar difference in the amount allocated to each department be- tween the two drivers? Which of the two drivers is better? Why? What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver? The following data pertain to problems 6 through 8. General Administration Facilities Financial Services Suppose that St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each support department are: Department Support General Administration Revenue $3,000,000 1,500,000 500,000 $5,000,000 Facilities Financial Services Total Selected data for the three support and four patient services departments are as follows: Patient services Routine Care Intensive Care Diagnostic Services Other Services Total Grand total Patient Services Revenue $2,000,000 5,000,000 3,000,000 $30,000,000 4,000,000 6,000,000 10,000,000 $50,000,000 $50,000,000 Space (Square Feet) 10,000 20,000 Housekeeping Hours 15,000 45,000 400,000 1,500 3,000 500 5,000 40,000 60,000 100,000 600,000 645,000 Housekeeping Labor Hours 2,000 5,000 3,000 10,000 150,000 30,000 15,000 25,000 220,000 230,000 Salary Dollars $1,500,000 3,000,000 2,000,000 $6,500,000 $12,000,000 5,000,000 6,000,000 7,000,000 $30,000,000 $36,500,000
image text in transcribed
4,5 5. Refer to problem 4-Assume that the three patient services departments are Adult Services, Pediatric Services, and Other Services. The patient services reventie and hours of housekeeping services for each department are as follows: a. What is the doller allocation to each patient services department if patient services revenue is used as the cost diver? b. What is the dollar allocation to each patient services department if hours of housekeeping support are used as the cost dtiver? c. What is the dollar difference in the amount allocated to each department between the two drivers? d. Which of the two drivers is better? Why? The following data pertain to problems 6 through 8 . Suppose that 54, Benedicrs Hospitat has three support departments and four patient services departments, The direct costs to each suppert departmeat are: Selected data for the three support and four patient services departments are as follows

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Love Audit

Authors: Annah Conwell

1st Edition

B0B9SMDYNM, 979-8843874452

More Books

Students also viewed these Accounting questions