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Cost allocation rate per patient $16.80 Tanner Community Hospital has three operating dividsions: Hosptital Services, Laboratory, and Radiology. In addition, the hospital has three service
Cost allocation rate per patient $16.80
Tanner Community Hospital has three operating dividsions: Hosptital Services, Laboratory, and Radiology. In addition, the hospital has three service departments: Administration, Food Services, and Housekeeping. The three service departments ("cost pools") have the following costs and allocation bases ("cost drivers"): Service Department Administration Food Services Housekeeping Costs $398,496 $300,080 $84,984 $783,560 Allocation Basis (Cost driver) Number of patients Meals served Square feet occupied Provided below are the actual quantities of cost drivers utilized by each division: Operating Division Cost driver Hospital Services Laboratory Radiology Number of patients 10,380 10,330 3,010 Meals served 26,840 22,080 5,640 Square feet occupied 149,620 22,440 40,400 Total 23,720 54,560 212,460 Part(a) (9x0.3 pt = 2.7 pts) Calculate the cost allocation rate applicable to each service department's costs. Total quantity of Cost pool Cost driver Costs cost driver Cost allocation rate Administration Food Services Housekeeping Number of patients Meals served Square feet occupied per patient per meal per square footStep by Step Solution
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