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Rocky Mountain General Hospital serves three counties in Colorado. The hospital is a nonprofit organization that is supported by patient billings, county and state funds,

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Rocky Mountain General Hospital serves three counties 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 Food Service Section Cafeteria Patient Food Service 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 $190,000 Cubic feet of space 24,000 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 220,000 Budgeted dollars of patient billings 40,000 Shown below are the amounts of each cost allocation base associated with each division. General Medicine Division Surgical Division Medical Support Division Administrative division Total Square Feet 15,000 8,000 9,000 8,000 40,000 Cubic Feet 135,000 100,000 90,000 75,000 400,000 Number of Employees 30 20 20 30 Patient Billings $ 2,000,000 1,250,000 750,000 100 $4,000,000 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)) empl. General administration General Medicine Surgical Medical Support Administrative Total 0 empl. 0% $ Community outreach billings General Medicine Surgical Medical Support Administrative Total $ 0 billings 0% $ Required 1 Required 2 >

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