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pro a/ The housekeeping services department of Ruger Clinic, a multispecialty practice in Toledo, Ohio, had $100,000 in direct costs during 2015. These costs must

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pro a/ The housekeeping services department of Ruger Clinic, a multispecialty practice in Toledo, Ohio, had $100,000 in direct costs during 2015. These costs must be allocated to Ruger's three revenue-producing patient services departments using the direct revenue and hours of housekeeping services used. The patient services departments generated $5 million in total revenues during 2015, method. Two cost drivers are under consideration: patient services and to support these clinical activities, they used 5,000 hours of What is the value of the cost pool? b. What is the allocation rate if patient services revenue is used as the cost driver? hours of housekeeping services is used as the cost driver? 62. Refer to Problem 6.1. Assume that the three patient services 2011 departments are adult services, pediatric services, and other services. The patient services revenue and hours of housekeeping services for each department are as follows: housekeeping services. 2. Department Adult Services Pediatric Services Other Services Total Revenue $3,000,000 1,500,000 500,000 $5,000,000 Housekeeping Hours 1,500 3,000 500 . 5,000 on a. What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver? b. What is the dollar allocation to each patient services department if hours of housekeeping support is used as the cost driver

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