Now assume that the hospital uses the step-down method for cost allocation, with 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. Assume also that the general administration department provides the most services to other support departments, followed closely by the facilities department. The financial services department provides the least services to the other support departments.

WHAT IS THE TOTAL SALARY HIGHLIGHTED IN YELLOW???

Font Paragraph Problem 6.5 General admin initial allocation Direct costs Total salary Allocation rate S0 #DIV/0! #DIV/0! #DIV/0! Facilities Financial service:s Subsequent allocation to facilities Cost pool Admin allocation S0 #DIV/0! #DIV/0! Hours 223,000 Patient service plus financial services Allocation per hour #DIV/0! Hours 3,000 financial services hours Allocation to Financial service:s #DIV/0! Subsequent allocation to financial services Cost pool Facilities allocation Admin allocation S0 #DIV/0! #DIV/0! #DIV/0! 50,000,000 #DIV/0! Patient services revenue Allocation per revenue $ Font Paragraph Problem 6.5 General admin initial allocation Direct costs Total salary Allocation rate S0 #DIV/0! #DIV/0! #DIV/0! Facilities Financial service:s Subsequent allocation to facilities Cost pool Admin allocation S0 #DIV/0! #DIV/0! Hours 223,000 Patient service plus financial services Allocation per hour #DIV/0! Hours 3,000 financial services hours Allocation to Financial service:s #DIV/0! Subsequent allocation to financial services Cost pool Facilities allocation Admin allocation S0 #DIV/0! #DIV/0! #DIV/0! 50,000,000 #DIV/0! Patient services revenue Allocation per revenue $