Problem 12-43 Cost Distribution Using Allocation Bases; Hospital (LO 12-4) Rocky Mountain General Hospital serves three countles In Colorado. The hospital is a nonprofit organization that is supported by patient billings. county and state funds, and private donations. The hospital's organization is shown in the following chart. Rocky Mountain General Hospital General Medicine Division Surgical Division Medical Support Division Administrative Division Nursing Department Nutrition Department Housekeeping Department Maintenance Department Radiology and Laboratory Department Kitchen Registered Dietitians Section Patient Food Service Patient Food Service Cafeteria The following table shows the cost allocation bases used to distribute various costs among the hospital's divisions. Cost Allocation Base Annual Cost Square feet of space $284, eee Cubic feet of space 38,eee Cost Pool Facilities: Building depreciation Equipment depreciation Insurance Utilities: Electricity Waste disposal Water and sewer Cable TV and phone Heat General administration: Administrator Administrative staff Office supplies Community Outreach: Public education School physical exams Budgeted number of employees 234,888 Budgeted dollars of patient billings 54,00 General Medicine Division Surgical Division Medical Support Division Administrative Division Total Square Feet 18,900 18,888 13,5ee 18,888 54,000 Cubic Feet 194, 480 129,600 113,480 102,600 548,eee Number of Employees 30 20 20 30 180 Patient Billings $2,325,000 1,395,eee 938,eee $4,650,eee Required: 1. Prepare a table that distributes each of the costs listed in the preceding table to the hospital's divisions. 2 Review the appropriateness of patient billings as the basis for distributing community Outreach costs to the hospital's divisions, what would be the best allocation base? 3. What are the benefits of allocating utility costs to the divisions? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a table that distributes each of the costs listed in the preceding table to the hospital's divisions. (Round "Percentage of Total answers to 2 decimal places. (i.e., 0.1234 should be entered as 12.34)) Cost Pool Division Allocation Base Percentage of Total Costs Distributed Facilities General Medicine sq.ft Surgical Medical Support Administrative Tota 0.00% $ 0 % 0 sq.ft Utilities cu.ft. General Medicine Surgical Medical Support Administrative Tota 0 cu.ft. 0.00% $ 0 General administration empl. General Medicine Surgical Medical Support Administrative Total empl. 0.00% S 0 Community Outreach billings % General Medicine Surgical Medical Support Administrative Total $ O billings 0.00% 0