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Please answer the question as soon as possible, part B (chart is the most important part. I'll make sure to leave a thumbs up! The
Please answer the question as soon as possible, part B (chart is the most important part. I'll make sure to leave a thumbs up!
The following data pertain to problems 6.3 through 6.6: St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follows: General administration Facilities Financial services $2,000,000 5,000,000 3,000,000 Selected data for the three support and four patient services departments are shown below: Patient Services Space Housekeeping Revenues (square feet) Labor Hours Salary Dollars 10,000 20,000 15,000 45,000 2,000 5,000 3,000 10,000 $ 1,500,000 3,000,000 2,000,000 $ 6,500,000 Department Support: General administration Facilities Financial services Total Patient Services: Routine care Intensive care Diagnostic services Other services Total Grand total $30,000,000 4,000,000 6,000,000 10,000,000 $50,000,000 $50,000,000 400,000 40,000 60,000 100,000 600,000 645,000 150,000 30,000 15,000 25,000 220,000 230,000 $12,000,000 5,000,000 6,000,000 7,000,000 $30,000,000 $36,500,000 6.3. Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration and financial services is patient services revenue, while the cost driver for facilities is space utilization. a. What are the appropriate allocation rates? b. Use an allocation table similar to exhibit 6.7 to allocate the hospital's overhead costs to the patient services departmentsStep by Step Solution
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