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please help solve and please show work. The housekeeping services department of Southcoast Health, a multispecialty medical practice, had $100,000 in direct costs in 2020.
please help solve and please show work.
The housekeeping services department of Southcoast Health, a multispecialty medical practice, had $100,000 in direct costs in 2020. These costs must be allocated to Southcoast's three revenue-producing patient services departments using the direct method. Two cost drivers are being considered: (1) patient services revenue generated, and (2) housekeeping services used. The patient services departments generated $5,000,000 in total revenues during 2020, and to support these clinical activities, a total of 5000 hours of housekeeping services were utilized a. b. What is the total value of the cost pool? What is the allocation rate if: i. Patient services revenue is used as the cost driver? ii. Hours of housekeeping services is used as the cost driverStep by Step Solution
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