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Hope Clinic is a not - for - profit outpatient facility that provides medical services to both fee - paying patients and low - income
Hope Clinic is a notforprofit outpatient facility that provides medical services to both feepaying patients and lowincome governmentsupported patients. Reimbursement from the government is based on total actual costs of services provided, including both direct costs of patient services and indirect operating costs. Patient services are provided through two producing departments, Medical Services and Ancillary Services includes Xray, therapy, etc. In addition to the direct costs of these departments, the clinic incurs indirect costs in two service departments, Administration and Facilities. Administration costs are allocated first based on the number of fulltime employees, and Facilities costs are then allocated based on space occupied. Costs and related data for the current month are as follows:
Medical Ancillary
Administration Facilities Services Services
Direct costs $ $ $ $
Number of employees
Amount of space occupied square feet
Number of patient visits
Required
a Using the step method, prepare a schedule allocating the common service department costs to the producing departments.
Service Producing
Administration Facilities Medical Ancillary
Direct costs Answer
Answer
Answer
Answer
Cost allocations:
Administration: Answer
To Facilities: Answer
To Medical: Answer
To Ancillary: Answer
Facilities: Answer
To Medical: Answer
To Ancillary: Answer
Total costs Answer
Answer
Answer
Answer
b Determine the amount to be reimbursed from the government for each lowincome patient visit.
Medical Ancillary
Cost per patient visit Answer
Answer
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