Assume that the hospital uses salary dollars as the cost driver for general administration, housekeeping labor hours as the cost driver for facilities, and patient services revenue as the cost driver for financial services. (The majority of the costs of the facilities department stem from the provision of housekeeping services.)

WHAT GOES IN THE DIRECT COST THAT IS HIGHLIGHTED IN GREEN?

WHAT GOES IN THE DORECT COST THAT IS HIGHLIGHTED IN YELLOW under facilties

WHAT GOES IN THE DORECT COST THAT IS BOX UNDERHIGHLIGHTEDD UNDER FINANCIAL SERVICES?

WHAT NUMBERS GO IN THE HIGHLIGHTED ALLOCATION RATE CHART (ROUTINE, INTENSIVE CARE, DIAGNOSTIC, OTHER, TOTAL HIGHLIGHTED IN GREEN)

NEEDING PROPER NUMBERS FOR HIGHLIGHTED AREAS AS THE CALCULATIONS ARE IN THE EXCEL ALREADY

 

Problem 6.4 General admin allocation rate Direct costs Total salary Allocation rate $30,000,000 $0.000 Facilities Direct costs Housekeeping hours 220,000 Allocation rate $0.00 Financial services Direct costs Patient services revenue $50,000,000 Allocation rate $0.00 b. Allocation to Patient services Allocation Rate Routine Intensive care Diagnostic Other Total General admin $0.00 $0 $0.00 $0.000 $0.00 $0 Facilities $0.00 $0 $0.00 $0.00 $0.00 $0 Financial services $0.00 $0.00 $0.00 $0.00 $0.00 $0 Total indirect costs $0 $0 $0 $0 $0 10,000,000 allocation target