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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
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