Question
Q. Using the information in the table below, calculate the allocation rate for each support department. Overhead Department Cost Pool Cost Driver 1 Allocation Rate
Q. Using the information in the table below, calculate the allocation rate for each support department.
| Overhead Department | Cost Pool | Cost Driver1 | Allocation Rate |
| Administration | $3,000,000 | $50,000,000 |
|
| Facilities | 4,000,000 | 600,000 Ft2 |
|
| Financial Services | 3,000,000 | $50,000,000 |
|
|
|
|
|
|
| Total Cost Pool | $10,000,000 |
|
|
1Administration = Total patient service revenue
Facilities = Total square footage
Financial Services = Total patient service revenue
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Financial Times Guide To Finance For Non Financial Managers
Authors: Jo Haigh
1st Edition
0273756206, 978-0273756200
