I need 6.3, 6.4, and 6.5 answered. Thank you!
I attached 6.7 for reference to 6.3B
The following data pertain to problems 6.3 through 6.6 St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follous General Administration Facilities Financial Services $2,000,000 5,000,000 3,000,000 Selected data for the three support and four patient services departments are shown below: Patient Space Services (square Housekeeping Salary Revenue feet) Labor Hours Dollars Department Support: General 10,000 2,000 $ 1,500,000 Administration Facilities Financial Services 20,000 15,000 45,000 5,000 3,000,000 2,000,000 10,0006,500,000 3,000 Total Patient Services: Routine Care $30,000,000 400,000 150,000 $12,000,000 4,000,000 40,000 30,000 5,000,000 Diagnostic Services 6,000,000 60,000 15,000 6,000,000 7,000,000 $50,000,000 600,000 220,000 $30.000000 50,000,000 645,000230,000 $36,500,000 Intensive Care Other Services 10,000,000 100,000 25,000 Total Grand Total 6.3 Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration and financial services is patient services revenue, while the cost driver for facilities space utilization. a. What are the appropriate allocation rates? b. Use an allocation table similar to Exhibit 6.7 to allocate the hospital's overhead costs to the patient services departments. The following data pertain to problems 6.3 through 6.6 St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follous General Administration Facilities Financial Services $2,000,000 5,000,000 3,000,000 Selected data for the three support and four patient services departments are shown below: Patient Space Services (square Housekeeping Salary Revenue feet) Labor Hours Dollars Department Support: General 10,000 2,000 $ 1,500,000 Administration Facilities Financial Services 20,000 15,000 45,000 5,000 3,000,000 2,000,000 10,0006,500,000 3,000 Total Patient Services: Routine Care $30,000,000 400,000 150,000 $12,000,000 4,000,000 40,000 30,000 5,000,000 Diagnostic Services 6,000,000 60,000 15,000 6,000,000 7,000,000 $50,000,000 600,000 220,000 $30.000000 50,000,000 645,000230,000 $36,500,000 Intensive Care Other Services 10,000,000 100,000 25,000 Total Grand Total 6.3 Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration and financial services is patient services revenue, while the cost driver for facilities space utilization. a. What are the appropriate allocation rates? b. Use an allocation table similar to Exhibit 6.7 to allocate the hospital's overhead costs to the patient services departments
