6.3 assume that the hospital uses the direct method for cost

and our patient dana pre Promo S. Reeder Hospital ha p port department departments The direct costs to each General Administration Facilities Financial Services Selected data for the three support and four patient ser shown below: to each of the upper department 52.000.000 5.000.000 3,000,000 lient services departments Housekeeping Labor Hours Salary Dollars 2,000 $1,500,000 Patient Space Services (square Department Revenue feet) Support: a General 10,000 Administration Facilities 20,000 Financial Services 15,000 Total 45,000 Patient Services: Routine Care $30,000,000 400,000 Intensive Care 4,000,000 40,000 Diagnostic Services 6,000,000 60,000 Other Services 10,000,000 100,000 Total $50,000,000 600,000 Grand Total $50,000,000 645,000 5,000 3,000 10,000 3,000,000 2,000,000 $ 6,500,000 150,000 30,000 15,000 25,000 220,000 230,000 $12,000,000 5,000,000 6,000,000 7,000,000 $30,000,000 $36,500,000 6.3 Assume that the hospital uses the direct method for cost allocation Furthermore, the cost driver for general administration and financia services is patient services revenue, while the cost driver for faciliti space utilization. a. What are the appropriate allocation rates? b. Use an allocation table similar to Exhibit 6.7 to allocate the hospital's overhead costs to the patient services departments