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fill in the blanks using the Step down method allocation if given the following information: Revenues: Adult Medicine $12,000,000 Obstetrics 6,000,000 Pediatrics 2,000,000 Total revenues
fill in the blanks using the Step down method allocation if given the following information: Revenues: Adult Medicine $12,000,000 Obstetrics 6,000,000 Pediatrics 2,000,000 Total revenues $20,000,000 Direct cost: Patient service Departments: Adult medicine $6,000,000 Obstetrics 3,600,000 Pediatrics $1,200,000 Subtotal $10,800.000 Support Departments: Administration: 1,000,000, Facilities 4,400,000 Finance 1,800,000 Subtotal 7,200,000 Total costs $18,000,000
STEP-DOWN METHOD FOR X, NO AMOUNT SHOULD BE ENTERED.
Administration | facilities | finance | adult medicine | obstetrics | pediatrics | Patient Service total | |
Administration allocation | X | $ 100,000 | $ 100,000 | $ 350,000 | |||
facilities allocation | X | X | 473,684 | 473,684 | |||
finance allocation | X | X | X | 395,614 | |||
total | X | X | X |
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