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Please answer questions 14-16 using the data provided. North Central Health Care Facilities has three Revenue Producing Departments and four Non-Revenue Producing departments with the
Please answer questions 14-16 using the data provided.
North Central Health Care Facilities has three Revenue Producing Departments and four Non-Revenue Producing departments with the data and costs as follows: Costs Departments Administration Maintenance Purchasing Dietary Sunny Vale Nursing Home In-Patient Out-Patient $500,000 170,000 250,000 200,000 500,000 600,000 410,000 Cost Driver Direct costs Square Feet Number of Purchase Orders Number of Meals Revenue Producing - N/A Revenue Producing - N/A Revenue Producing - N/A Cost Driver Data Meals Served 200 Departments Administration Maintenance Purchasing Dietary Sunny Vale Nursing Home In-Patient Out-Patient Square feet 1,200 3,000 1,000 4,000 25,000 11,000 4,000 Purchase Orders 1,600 1,400 1,350 1,000 1,500 1,300 2,200 100 150 200 600 300 100 QUESTION 14 Under the direct method - what is the total balance of the three revenue producing departments after all non-revenue producing departments have been allocated (round to the nearest dollar). Do not use $ sign or comma in your answer. QUESTION 15 Under the step-down method, how much of Dietary costs get allocated directly to In-Patient? Round to nearest dollar, do not use $ sign or commas. QUESTION 16 Using the step method, how much is the total for Out-patient after all non-revenue producing departments are allocated? Round to the nearest dollar, do not use $ sign and do not use commasStep by Step Solution
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