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patient charges. The hospital currently uses the traditional allocation method and allocates its total costs to its three Departments: Surgery, Outpatient, and Post-Surgical Care based

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patient charges. The hospital currently uses the traditional allocation method and allocates its total costs to its three Departments: Surgery, Outpatient, and Post-Surgical Care based on square feet in each of the Departments. The hospital's CFO has suggested that the hospital improve pricing policies by seeking a tighter relationship between costs and pricing. She has suggested using ac- tivity based costing method and has determined that costs can be assigned to one of three cost pools. The three cost pools follow along with the estimated amounts and activity drivers. Activity Center Costs Activity Driver Quantity Professional Salaries $950,900 Professional Hours 25,554 Medical Supplies $99.200 Patients Served 8,255 Building costs S77,085 Square Feet Used 35,210 Details for each Department follow: Department Square Feet Professional Hours Number of Patients Surgery 11.250 8,460 1.100 Outpatient 12.850 4,474 3,130 Post-Surgical Care 11,110 12,620 4,025 ) What is the cost allocation to each Department under the traditional method? 3B) What is the cost allocation to each Department under the ABC method? Show all your work in the excel sheet below. Write your final answer for each section in the cor- responding space in the Tab marked "COVER PAGE" patient charges. The hospital currently uses the traditional allocation method and allocates its total costs to its three Departments: Surgery, Outpatient, and Post-Surgical Care based on square feet in each of the Departments. The hospital's CFO has suggested that the hospital improve pricing policies by seeking a tighter relationship between costs and pricing. She has suggested using ac- tivity based costing method and has determined that costs can be assigned to one of three cost pools. The three cost pools follow along with the estimated amounts and activity drivers. Activity Center Costs Activity Driver Quantity Professional Salaries $950,900 Professional Hours 25,554 Medical Supplies $99.200 Patients Served 8,255 Building costs S77,085 Square Feet Used 35,210 Details for each Department follow: Department Square Feet Professional Hours Number of Patients Surgery 11.250 8,460 1.100 Outpatient 12.850 4,474 3,130 Post-Surgical Care 11,110 12,620 4,025 ) What is the cost allocation to each Department under the traditional method? 3B) What is the cost allocation to each Department under the ABC method? Show all your work in the excel sheet below. Write your final answer for each section in the cor- responding space in the Tab marked "COVER PAGE

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