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Kirkwood Regional Hospital has two service departments: Administration and Maintenance. Information regarding these service departments is included below. Service department Costs Cost driver Administration $278,070

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Kirkwood Regional Hospital has two service departments: Administration and Maintenance. Information regarding these service departments is included below. Service department Costs Cost driver Administration $278,070 Number of patients Maintenance $131,631 Square feet occupied The hospital has two operating divisions: Hospital Services and Laboratory. Information regarding these operating divisions and the actual quantities of cost driv used is provided below. Operating division Cost driver Hospital Services Laboratory Total Number of patients 9,400 10, 100 19,500 Square feet,occupied 131,000 20,300 151,300 What is the cost allocation rate applicable to the Maintenance department? $0.87 $2.39 $1.15 $2.71

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