althcare Finance The following data pertain to probiems 6.7 and 6& St. Luke's Hospital has three support departments and four patient departments. The direct costs to cach of the support departments are as ce $4,000,000 5,000,000 4,000,000 Maintenance Employce Bencfits Selected data for the three support and four patient services Number of Patient Space Full-Time departments are shown below Services (square EquivalentSalary Dollars Revenue fet) Swpport General 8,000 15 $2,500,000 Administration 75 7,00050 140 10,000 3,500,000 3,000,000 Employee Benefits Total Patient Services Routine Care $40,000,000 500,000 Intensive Care 7,000,000 45,000 Obstetrics Services 4,000,000 35,000 Other Services 12,000,000 200,000 Total Grand Total$63,000,000 805,000 25,000 $9,000 700 200 150 $18,000,000 6,000,000 4,000,000 4008.000,000 $63000,000 780,000 1450 $36,000,000 1590 $45,000,000 6.7 Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration is patient services revenuc, the cost driver for maintenance is space utilization, and the cost driver for employee bencfits is the number of full-time equivalent employces. 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 utilizaton the cost driver for maintenance. a. What are the appropriate allocation rates