Il Musli duon.) is the better cost driver for the costs of a hospital's financial department: patient services department revenues or number 6.8 Which is the bette services department: patient servi of bills generated? Explain your rationale. atient services re as follows The following data pertain to problemus 6.3 through 6.6: St. Benedict's Hospital has three support departments and four patien departments. The direct costs to each of the support departments are as General Administration $2,000,000 Facilities 5,000,000 Financial Services 3,000,000 Selected data for the three support and four patient services departe shown below: partments are Housekeeping Labor Hours Salary Doll 2,000 $1,500,000 Patient Space Services (square Revenue feet) Department Support: General 10,000 Administration Facilities 20,000 Financial Services 15,000 Total 45,000 Patient Services: Routine Care $30,000,000 400,000 Intensive Care 4,000,000 40,000 Diagnostic Services 6,000,000 60,000 Other Services 10,000,000 100,000 Total $50,000,000 600,000 Grand Total 5,000 3,000 10,000 3,000,000 2,000,000 $ 6,500,000 150,000 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 $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. 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