Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exhibit 4 County Hospital Cost Allocation Data Support Departments Housekeeping Direct Cost Space (Sq. Ft) Housekeeping $500,000 8,000 General Administration $750,000 12,000 Maintenance $600,000 15,500

Exhibit 4 County Hospital Cost Allocation Data

Support Departments Housekeeping Direct Cost Space (Sq. Ft)

Housekeeping $500,000 8,000

General Administration $750,000 12,000

Maintenance $600,000 15,500

TOTAL SUPPORT DEPTS. $1,850,000 35,000

Patient Service Departments Direct Cost Space (sq. ft) revenues

Medicine $800,000 10,000 $970,000

Surgery $1,200,000 20,000 $3,600,000

Outpatient Adult $560,000 15,000 $720,000

Outpatient Pediatrics $470,000 12,000 $630,000

Total Patient Service Depts. $3,030,000 57,000 $5,920,000

County Hospital Totals $4,880,000 92,500 $5,920,000

27. Assume that managers want to allocate housekeeping costs to the patient service departments. What is the value of the housekeeping cost pool? (2 points)

  1. 8,000 sq feet

  2. 57,000 sq feet

  3. $500,000

  4. $1,850,000

Page 7 of 8

28. Assume that space will be the cost driver and that managers want to use the direct cost allocation method. What is the total amount for the cost driver? (2 points)

  1. 57,000 sq feet

  2. 35,500 sq feet

  3. 92,500 sq feet

  4. None of the above

29. What is the appropriate allocation rate for the housekeeping cost pool if space is the cost driver and using the direct cost allocation method? (2 points)

  1. $5.40 per sq foot

  2. $14.08 per sq foot

  3. $8.77 per sq foot

  4. None of the above

30. Assuming that the cost driver for housekeeping costs is space and using the direct cost allocation method, what is the allocation of housekeeping costs to the Medicine Department? (2 points)

a. $ 87,720 b. $ 54,000 c. $ 140,800 d. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Assurance Q And A 2019

Authors: ACA Simplified

1st Edition

1792949863, 978-1792949869

More Books

Students also viewed these Accounting questions