departmentsk cost and cost allocation homework. questions 5 and 6.

departmental costing*

St. Anthony's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follows: General Administration $2,000,000 Facilities $5,000,000 Financial Services $6,000,000 Selected data for the three support and four patient services departments are shown below: Department Patient Services Revenues Space Housekeeping (square feet) Labor Hours Salary Dollars Support General Administration Facilities Financial Services Total 10,000 20,000 15,000 45,000 2,000 5.000 3,000 10,000 $ 1,500,000 $3,000,000 $ 2,000,000 6,500,000 SA Patient Services Routine Care Intensive Care Diagnostic Services Other Services S 40,000,000 4,000,000 6.000.000 10,000,000 400,000 40,000 60,000 100,000 150,000 $ 22,000,000 30,000 $ 5,000,000 15.000 $ 6.000.000 25,000 S 7.000.000 Facilities $5,000,000 Financial Services $6,000,000 Selected data for the three support and four patient services departments are shown below: Patient Services Space Housekeeping Department Salary Revenues (square feet) Labor Hours Dollars Support General Administration Facilities Financial Services Total 10,000 20,000 15,000 45,000 2.000 5,000 3,000 10,000 $ 1.500,000 S 3,000,000 S 2,000,000 6,500,000 Patient Services Routine Care Intensive Care Diagnostic Services Other Services Total Grand Total S S S S 40,000,000 4,000,000 6,000,000 10,000,000 60,000,000 60,000,000 400,000 40,000 60,000 100,000 600,000 645,000 150,000 $ 22,000,000 30,000 $5,000,000 15,000 $ 6,000,000 25,000 S 7,000,000 220,000 $40.000.000 230,000 $46,500,000 #5). Use the information for St. Anthony's. Use the direct method of cost allocation. Assume that the hospital uses salary dollars as the cost driver for general administration and housekeeping labor hours as the cost driver for facilities. Assume that $5,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the total of indirect costs allocated to Routine Services? Hint: You have already figured out the two Financial Service Allocation Rates - all we have to do is to calculate the rates for General Administration and Facilities and then apply the rates to the Patient Services Departments. Do one step at a time and create a table. #6). Use the information for St. Anthony's. Use the direct method of cost allocation. Assume that the hospital uses salary dollars as the cost driver for general administration and housekeeping labor hours as the cost driver for facilities. Assume that $5,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the total of indirect costs allocated to Other Services Hint: You have already figured out the two Financial Service Allocation Rates - all we have to do is to calculate the rates for General Administration and Facilities and then apply the rates to the Patient Services Departments. Do one step at a time and create a table. St. Anthony's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follows: General Administration $2,000,000 Facilities $5,000,000 Financial Services $6,000,000 Selected data for the three support and four patient services departments are shown below: Department Patient Services Revenues Space Housekeeping (square feet) Labor Hours Salary Dollars Support General Administration Facilities Financial Services Total 10,000 20,000 15,000 45,000 2,000 5.000 3,000 10,000 $ 1,500,000 $3,000,000 $ 2,000,000 6,500,000 SA Patient Services Routine Care Intensive Care Diagnostic Services Other Services S 40,000,000 4,000,000 6.000.000 10,000,000 400,000 40,000 60,000 100,000 150,000 $ 22,000,000 30,000 $ 5,000,000 15.000 $ 6.000.000 25,000 S 7.000.000 Facilities $5,000,000 Financial Services $6,000,000 Selected data for the three support and four patient services departments are shown below: Patient Services Space Housekeeping Department Salary Revenues (square feet) Labor Hours Dollars Support General Administration Facilities Financial Services Total 10,000 20,000 15,000 45,000 2.000 5,000 3,000 10,000 $ 1.500,000 S 3,000,000 S 2,000,000 6,500,000 Patient Services Routine Care Intensive Care Diagnostic Services Other Services Total Grand Total S S S S 40,000,000 4,000,000 6,000,000 10,000,000 60,000,000 60,000,000 400,000 40,000 60,000 100,000 600,000 645,000 150,000 $ 22,000,000 30,000 $5,000,000 15,000 $ 6,000,000 25,000 S 7,000,000 220,000 $40.000.000 230,000 $46,500,000 #5). Use the information for St. Anthony's. Use the direct method of cost allocation. Assume that the hospital uses salary dollars as the cost driver for general administration and housekeeping labor hours as the cost driver for facilities. Assume that $5,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the total of indirect costs allocated to Routine Services? Hint: You have already figured out the two Financial Service Allocation Rates - all we have to do is to calculate the rates for General Administration and Facilities and then apply the rates to the Patient Services Departments. Do one step at a time and create a table. #6). Use the information for St. Anthony's. Use the direct method of cost allocation. Assume that the hospital uses salary dollars as the cost driver for general administration and housekeeping labor hours as the cost driver for facilities. Assume that $5,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the total of indirect costs allocated to Other Services Hint: You have already figured out the two Financial Service Allocation Rates - all we have to do is to calculate the rates for General Administration and Facilities and then apply the rates to the Patient Services Departments. Do one step at a time and create a table