Consider the following cost table for a hospital

Overhead costs

CostAllocation basis

Housekeeping$100,000square ft

Final cost centersPatients treatedSquare ft

Outpatient$1 million1,0005,000

Inpatient$10 million5,00020,000

a.Calculate average cost per patient treated in each cost center, ignoring overhead costs

b.Calculate average cost per patient treated in each cost center, including overhead costs