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5. Consider the following cost table for a hospital Overhead costs Cost Allocation basis Housekeeping $ 100,000 square ft Final cost centers Patients treated Square
5. Consider the following cost table for a hospital
Overhead costs
Cost Allocation basis
Housekeeping$100,000square ft
Final cost centersPatients treatedSquare ft
Outpatient$1 million1,0005,000
Inpatient$10 million5,00020,000
a. Calculate average cost per patient treated in each cost center, ignoring overhead costs
b. Calculate average cost per patient treated in each cost center, including overhead costs
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