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Assume that the hospital uses the direct method for cost allocation ( REFER TO 6.3 St. BENEDICTS ATTACHMENT) . Furthermore, the cost driver for general
Assume that the hospital uses the direct method for cost allocation (REFER TO 6.3 St. BENEDICTS ATTACHMENT). Furthermore, the cost driver for general administration and financial services is patient services revenue, while the cost driver for facilities is space utilization. Answer the following questions:
a. What are the appropriate allocation rates?
b. Use the allocation table attached (TEMPLATE) to allocate the hospitals overhead costs to the patient services departments
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