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m Problem 12-43 Cost Distribution Using Allocation Bases: Hospital ( LO 12-4) Refer to the organization chart for Rocky Mountain General Hospital given in the

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m Problem 12-43 Cost Distribution Using Allocation Bases: Hospital ( LO 12-4) Refer to the organization chart for Rocky Mountain General Hospital given in the preceding problem. Ignore the rest of the data in that problem. The following table shows the cost allocation bases used to distribute varions cosis among the hospital's divisions. Shown below are the amounts of each cost allocation base associated with each division. Required: 1. Prepare a table similar to 9 Exlibit 12-5 that distributes each of the costs listed in the preceding table to the hospital's divisions. 2. Commeat on the appropriateness of patient billings as the basis for distributing comnunity outreach costs to the hospital's divisions Can you suggest a better allocation base? 3. Is there any use in allocating utilities costs to the divisions? What purposes could such an allocation process serve? 4. Build a spreadsheer: Construct an Excel spreadsheet to solve requirement 1 above. Show how the solution will change if the following information changes: the costs incurred were $200,000,$25,000,$200,000, and $50,000, for ficilities, utilities, general administration. and community outreacli, respectively

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