Problem 6.5 a-c I'll add a picture of 6.4 for part b.

omring data pertain to problems 6.3 through 6.6 The fall St. Benedict's Hospital has three support departments and four departments. The direct costs to each of the support departments are as General Administration S2,000,000 Facilities 5,000,000 Financial Services 3,000,000 selected data for the three support and four patient services departrments shown below: Patient Space Services (square Housekeeping Salary Revenue feet) Labor Hours Department ocatio 10,000 1,500,000 2,000 General Administration 3,000,000 20,000 5,000 Facilities 2,000,000 15.000 Financial Services 3,000 45,000 10,000 s 6,500,000 Total Patient Services $30,000,000 400,000 150,000 $12,000,000 Routine Care 4,000,000 40,000 30,000 5,000,000 Intensive Care 6,000,000 Diagnostic Services 6,000,000 60,000 15,000 Other Services 10,000,000 100,000 25,000 7,000,000 30,000,000 $50,000,000 600,000 220,000 Total $36,500,000 230,000 $50,000,000 645,000 Grand Total 5 int: The step down method of cost allocation, reviewed in this problem, is covered in detail in the Chapter 6 Supplement.) Now assume that the hospital uses the step-down method for cost allocation, with salary dollars as the cost driver for general administration, housekeeping labor hours as the cost driver for facilities, and patient services revenue as the cost driver for financi services. Assume also that the general administration department provides the most services to other support departments, followed closely by the facilities department. The financial services department ides the least services to the other support departments. e an allocation table to allocate the hospital's owerhead costs to the patient services departments. b. Compare the allocations with those obtained in Problem dollar 6.4. Explain the differences cost the direct method or the step down method better for ocation within St. Benedict's? Explain your