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IS Using the direct allocation for this problem. Accounting - Billing has a total cost pool of $5,000,000. The cost driver has been determined to
IS Using the direct allocation for this problem. Accounting - Billing has a total cost pool of $5,000,000. The cost driver has been determined to number of procedures. What would the allocation rate be for Accounting/Billings? (Hint: round to the second decimal place) Revenues Department Facilities (support dept) Accounting -Bains (support dept) Total for Support Departments Space (square Feet) Number of Procedures S $ Expenses 2,400,000 5,000,000 $ 7.400.000 10,000 20.000 30.000 Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Departments Grant Total $ 30,000,000 $ $ 25,000,000 $ $ 20,000,000 S $ 75.000.000 S s 75.000.000 S 10,000,000 9,000,000 7.000.000 26.000.000 33,400.000 125,000 100,000 75,000 300,000 330.000 $10,000 460,000 380,000 1,350,000 1.350.000 Select one or more: a. $1.48 per procedure b. $4.67 per procedure c. $75,000,000 dollars d. $3.70 per procedure IF Now that you have calculated the allocation rate for facilities using the Direct Method. What is the amount of facilities related expense that you would allocate to the Routine Care Department? (Hint: round to the second decimal place) Revenues Space (square Feet) Number of Procedure Department Facilities (support dept) Accounting - Billing (support dept) Total for Support Departments S Expenses 2,400,000 S 5,000,000 S 7.400,000 10,000 20,000 30.000 Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Toral for Patient Service Departments Grant Total $ 30,000,000 $ $ 25,000,000 $ $ 20,000,000 $ $ 75,000,000 $ $ 75,000,000 $ 10,000,000 9,000,000 7,000,000 20,000,000 33.400,000 125.000 100,000 75,000 300,000 330,000 $10,000 460,000 380,000 1.350.000 1.350.000 Select one or more: a. $5.45 per square foot b. $750,000 c. $240,000 d. $1,000,000 - IF Now that you have calculated the allocation rate for Accounting/Billing using the Direct Method. What is the amount of Accounting/Billing's related expense that you would allocate to the Routine Care Department? (Hint: round to the second decimal place) Revenues Space (square Feet) Number of Procedures Department Facilities (support dept) Accounting - Billing (support dept) Total for Support Departments Expenses $ 2,400,000 $ 5,000,000 S 7,400,000 10,000 20,000 30.000 Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Departments Grant Total $ 30,000,000 $ $ 25,000,000 $ $ 20.000,000 $ $ 75,000,000 $ S75,000,000 S 10,000,000 9,000,000 7,000,000 26,000,000 33,400.000 125.000 100,000 75,000 300,000 330.000 $10,000 460,000 380,000 1.350.000 1.350.000 Select one or more: a. $1,000,000 b. $2,640,500 c. $1,887,000 d. $540,000 What would be the total expense for the Routine Care department using the Direct Method (this is the addition of direct department expenses and allocated indirect costs). (Hint: round to the second decimal place) Select one or more: a. $9,875,000 b. $10,000,000 c. $1,000,000 d. $12,887,000 What should happen if you allocate indirect expenses properly? Select one or more: a. The amount allocated will always be substantially (>10%) greater than the beginning amount b. The amount allocated will always be substantially (
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