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Chapter 6: Departmental Costing and Cost Allocatio e that the hospital uses salary dollars as the cost driver 6.4 Assume for general administration, housekeeping labor

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Chapter 6: Departmental Costing and Cost Allocatio e that the hospital uses salary dollars as the cost driver 6.4 Assume for general administration, housekeeping labor hours as the cost r for facilities, and patient services revenue as the cost driver for financial services. (The majority of the costs of the facilities department stem from the provision of housekeeping services.) a. What are the appropriate allocation rates? b. Use an allocation table similar to the one used for Problem 6.3 if to allocate the hospital's overhead costs to the patient services departments. c. Compare the dollar allocations with those obtained in Problem d. Which of the two cost driver schemes is better? Eplain your doun method of cost allocation, reviewed in 6.3. Explain the differences. answer. Chapter 6: Departmental Costing and Cost Allocatio e that the hospital uses salary dollars as the cost driver 6.4 Assume for general administration, housekeeping labor hours as the cost r for facilities, and patient services revenue as the cost driver for financial services. (The majority of the costs of the facilities department stem from the provision of housekeeping services.) a. What are the appropriate allocation rates? b. Use an allocation table similar to the one used for Problem 6.3 if to allocate the hospital's overhead costs to the patient services departments. c. Compare the dollar allocations with those obtained in Problem d. Which of the two cost driver schemes is better? Eplain your doun method of cost allocation, reviewed in 6.3. Explain the differences

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