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is better d which orihe me drivers is bericht Hosto artments and our patien be support departments are $2,000,000 5,000,000 3,000,000 tient services departmen St.
is better d which orihe me drivers is bericht Hosto artments and our patien be support departments are $2,000,000 5,000,000 3,000,000 tient services departmen St. Benedict Hospital has three support departm departments. The direct costs to each of the suppo General Administration Facilities Financial Services Selected data for the three support and four patient shown below: Patient Services Revenue Housekeeping Labor Hours Salary Dollars $ 1.500. 3,000.00 5,000 3,000 10,000 2,000,000 $ 6,500.00 Space (square feet) Department Support 10,000 General Administration 20,000 Facilities 15,000 Financial Services 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 $50,000,000 645,000 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. What are the appropriate allocation rates? by Use an allocation table similar to Exhibit 6.7 to allocate the hospital's overhead costs to the patient services departments
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