A B D E Bennett Clinic has two patient service (mission) departments, internal medicine and pediatrics. These departments are supported by the finance department, the housekeeping department, and the general administration department. The following data have been assembled by the practice manager. 4 5 6 Department Direct Costs # of housekeeping hours # of invoices/bills FTEs 7 General Administration $ 200,000 30 50 2 8 Finance $ 150,000 50 20 3 9 Housekeeping $ 100,000 50 100 5 10 Internal Medicine $ 500,000 100 2000 10 11 Pediatrics $ 650,000 150 2500 15 12 112 Assume the clinic uses a step-down method of cost allocation with general administration first, finance second and housekeeping third. The practice manager has determined that the cost driver for housekeeping is the number of housekeeping hours, the cost driver for finance is the number of invoices/bills generated, and the cost driver for general administration is FTEs. Using the step-down method, allocate all support (service) department costs to the patient service (mission) departments and determine each mission department's total (full) costs. A partial template has been provided below 13 for your convenience. 345 14 15 F E F G Housekeeping B D 16 Allocation Bases (Cost Drivers) 17 General Admin Finance 18 19 20 21 22 23 24 25 26 27 28 Allocation Rates 29 General Admin Finance Housekeeping 30 31 32 33 34 35 Step-Down Method Allocation 36 37 38 39 General administration 40 Finance 41 Housekeeping 42 43 Internal Medicine 44 Pediatrics 45 46 47 Indirect Allocations Direct Costs General Admin Finance Housekeeping Full cost