I need help solving the following problems in Chapter 6: 6.3, 6.4, 6.6.

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met the cost driver at services departm hartment in Ooh eservas o ech patient d as the cost driver R a h department rried l allocation to each den is retter? W s the 3 through 6.6; ments and four patient dent services departments are as foll sto cachorro support depa Aresort der M ech General Administration $2,000,000 5,000,000 3,000,000 patient services departe epartments are Services data for the three support and four patie Space Patient Services Revenue square feet) Housekeeping Labor Hours Salary Dollars 10,000 2,000 $ 1,500,000 General Aaministration Facilities Financial Services 5,000 3,000 10,000 3,000,000 2,000,000 $ 6,500,000 20,000 15,000 45,000 Total Patient Series Routine Care $30,000,000 400,000 Intensive Care 4,000,000 40,000 Dragnostic Services 6,000,000 60,000 Other Services 10,000,000 100,000 Total $50,000,000 600,000 150,000 30,000 15,000 25,000 220,000 230,000 $12,000,000 5,000,000 6,000,000 7,000,000 $30,000,000 Grand Total $50,000,000 645,000 $36,500,000 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 is space utilization 2. What are the appropriate allocation rates? an allocation table similar to Exhibit 6.7 to allocate the costs to the patient services departments. hospital's overhead costs to the patient service epartment if that the hospital uses salary artment if Assume tha al uses salary dollars as the cost driver istration, housekeeping labor hours as the cost and patient services revenue as the cost drive ices. The majority of the costs of the facilities from the provision of housekeeping services.) are the appropriate allocation rates? cation table similar to the one used for Problem 6.3 he hospital's overhead costs to the patient services for general administrati driver for facilities, and patie, for financial services. (Th department stem from the pe a. What are the appropr b. Use an allocation tak to allocate the hospital? departments. C. Compare the dollar allo 6.3. Explain the differences. d. Which of the two answer. e dollar allocations with those obtained in Problem vices ws: two cost driver schemes is better? Explain your 6.5 Hint: The step-down method of cost allocation, reviewed in This problem, is covered in detail in the Chapter 6 Supplement.) hat the hosnital see the step down method for Il services department I other support departments, able to allocate the hospital's overhead costs to CU O provides ch an allocation table to 2. Use an alloc tient services departments, llocations with those obtained in Problem the patient se Compare the de 0.4. Explain Explain the differences. Is the direct method or allocation within s um to the direct method rivers as specified in P shod or the step down method better for cost thin St. Benedict's? Explain your answer method of cost allocation and use the same cost in Problem 6.4 for the general administration ents. However, assume that $2,000,000 of costs is related to billing and managerial reporting 10.000 is related to payroll and personnel management no Return facilities departments. However and facili financial services costs i and $1,000,000 is activities 2. Devise and imp se and implement a cost allocation scheme that recognizes the financial services department has two widely different functions. b. Is there any additional ere any additional information that would be useful in completing Part a of this problem? What are the costs and benefits to St. Benedict's of creating two cost pools for the allocation of financial services costs? Healthcare Finance four patient service ments are as follow 7 data propres 0 6 .8. Take Hospital has three support departments and for dapartments. The direct costs to each of the support departm General Administration Maintenance Employee Benefits Selected data for the three support and four patient services der shown below: $4,000,000 5,000,000 4,000,000 cs departments are Number of Full Time Equivalent Employees Salary Dollars $ 2,500,000 Patient Space Services Square Department Revenue feet) Support: General 8,000 Administration Maintenance 10,000 Employee Benefits 7,000 Total 25,000 Patient Services Routine Care S40,000,000 500,000 Intensive Care 7,000,000 45,000 Obstetrics Services 4,000,000 35,000 Other Services 12,000,000 200,000 Total $63,000,000 780,000 Grand Total $63,000,000 805,000 75 50 140 3,500,000 3,000,000 $ 9,000,000 700 200 150 400 $18,000,000 6,000,000 4,000,000 8,000,000 $36,000,000 $45,000,000 1,450 1,590 6.7 Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration is patient services revenue, the cost driver for maintenance is space utilization, and the cost driver for employee benefits is the number of full-time equivalent employees. a. What are the appropriate allocation rates? b. Use an allocation table similar to Exhibit 6.7 to all the hospital's overhead costs to the patient services 6.8 Assume that the hospital uses salary as the general administration and employs the cost driver for maintenance. a. What are the appropriate alloca , and nts. for zation as