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How do you solve this information using the matrix and reciprocal method Student Home Bb Assignments - 2020FA Cost A 1941398 1941398 Wednesday, October 28,

How do you solve this information using the matrix and reciprocal method

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Student Home Bb Assignments - 2020FA Cost A 1941398 1941398 Wednesday, October 28, 4 Course Hero + EJ A s3.amazonaws.com/blackboard.learn.xythos.prod/595a83118bf1e/1941398?response-cache-control=private%2C%20max-age%3D21600&response-content-disposition=inline%3B%20filena... MOTOSTACHE OCTVICO Assigned time by department Exhibit 10-11 were established as acceptable for cost-reimbursement purposes. The regulated order of allocation must be used for Medicare reimbursement. A hospital then can use either the reciprocal method or the step method to solve the cost-allocation problem. If it uses the step method, the order of departments for allocation is the same as that by which the departments are listed in Exhibit 10-11. Thus, depreciation and maintenance, buildings, is allocated before depreciation, movable equipment. Cost centers must be established for each of these nonrevenue- producing costs that are relevant to a particular hospital's operations. In the past year, WeCare Hospital reported the following departmental costs: Nonrevenue producing: Laundry and linen...... Depreciation and maintenance, buildings Employee health and welfare Maintenance of personnel.. Central supply Revenue producing: Operating room Radiology Laboratory Patient rooms.. $ 250,000 830,000 375,000 210,000 745,000 1,450,000 160,000 125,000 2,800,000 From Percentage usage of one department's services by another department follows: Laundry and linen..... Laundry and Linen - Depreciation and maintenance, buildings 10% Employee health and welfare 15 Maintenance of personnel..... Central supply. From - 10 To Nonrevenue Producing Employee Health and Welfare 10% Maintenance Central of Personnel Supply Depreciation and Maintenance, Buildings 5% Operating Rooms Radiology To Revenue Producing Patient 10% 5% 3% 12% 8%

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