Question
Columbus Clinical Services (a multispecialty group practice) has three support departments, Administration, Housekeeping and Finance, and three patient services departments, Medicine, Surgery and Pharmacy. Administration
Columbus Clinical Services (a multispecialty group practice) has three support departments, Administration, Housekeeping and Finance, and three patient services departments, Medicine, Surgery and Pharmacy. Administration provides the most services to other departments followed by Housekeeping and then Finance. The results of a step-down cost allocation for Cherry Community Hospital are presented below: Administration Costs Allocated to: Housekeeping $2,000 Finance $1,000 Medicine $4,000 Surgery $5,000 Pharmacy $2,000 Housekeeping Costs Allocated to: Finance $1,000 Medicine $4,500 Surgery $8,000 Pharmacy $2,500 Finance Costs Allocated to: Medicine $7,000 Surgery $9,000 Pharmacy $3,000 Given the information above, what were total direct costs (the original cost pool) for the Finance Department?
a. | $21,000 | |
b. | $17,000 | |
c. | $19,000 | |
d. | $14,000 | |
e. | $16,000 |
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