Part b. Do I used total amounts or allocated totals to solve. Exh 6.7 is in the book. Not sure how to share that as well.

PROJECTED REVENUES AND COSTS PER DEPARTMENT Revenues Inpatient Services $ Outpatient Services 18,500,000 Clinic Services 32,600,000 Total revenues 6,250,000 S 57,350,000 Direct Costs Inpatient Services S 9,275,000 Outpatient Services 18,250,000 Clinic Services 4,500,000 Total costs 32,025,000 Service Department Costs Financial Services $ 4,750,000 Facilities 8,500,000 Housekeeping 2,750,000 General Administration 3,500,000 Total overhead costs 19,500,000 Total Costs 51,525,000 Projected Profit 5,825,000 Management considered various cost drivers and made the determiniation to use the following as the most relevant for each service department: Department Cost Driver Financial Services Patient revenue Facilities Square feet Housekeeping Housekeeping hrs General Administration Salary dollars Utlization information for allocations: Clinic Total Cost Driver Inpatient Outpatient Patient Revenue $18,500,000 $32,600,000 $6,250,000 $57,350,000 Square Feet 255,000 175,000 65,000 495,000 Housekeeping Hours 90,000 55,000 30,000 175,000 $9,000,000 $2,500,000 $18,000,000 Salary Dollars $6,500,000 Use Exhibit 6.6 as a guideto complete this table and calculate the allocation rates. Be sure to use Excel functions/formulas to show your Cost Driver Allocation Rate Department Cost Pool Amount Total Utilization 37,350,000 Financial Services 4.75 020 pt rev 8, 500, 209 Sept 495,000 Facilities Housekeeping General Administration Use Exhibit 6.7 as a guide to complete the indirect cost allocations to each patient service area. Clinic Total Indirect Cost Allocations Inpatient Outpatient Financial Services Facilities Housekeeping General Administration Total Indirect Costs Using Exhibit 6.8 as a guide, complete the P&L projections below. Outpatient Clinic Total P&L Inpatient Revenue Direct Costs Indirect Costs Total Costs Profit using only Direct Costs Profit margin % only Direct Costs Profit using Total Costs Profit margin % using Total CostsEXHIBIT 6.7 Kennington Hospital: Final Allocations Patient Services Department Support Department (allocation rate) Routine Care Laboratory Financial Services (50.05556) x $16,000,000 = S 888,960 >