6.8

250 Smpport General 75 10 000$18,000.00 Administration Maintenance Employee Benefits Total Patient Services 3,500 7000 50 140 25,000 700 200 7,000,000 45,000 Obstetrics Services 4,000,000 35,000 $63,000,000 780,000 6,000,006 4,000,00 8000 00 S36,000 00 $45,000,00 Care S$40,000,000 500,000 Other Services 12,000,000 200,000400 1,590 Intensive Care 1,450 Total Grand Total 63,000,000 805,000 Furthermore, the cost driver for general administration is services revenue, the cost driver for maintenance is space and the cost driver for employee benefits is the number of full tion 6.7 Assume that the hospital uses the direct method for cost all utiliz equivalent employees. 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 6.8 Assume that the hospital uses salary dollars as the cost driver for general administration and employee benefits, and space utilization a the cost driver for maintenance. a. What are the appropriate allocation rates