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 Medical Administrative Division Support Division Division Nursing Department Radiology and Laboratory Department Nutrition Department Housekeeping Department Maintenance Department Registered Dietitions Section Patient Food Service Kitchen Patient Food Service Cafeteria The following table shows the cost allocation bases used to distribute various costs among the hospital's divisions. Cost Pool Facilities Building depreciation Cost Allocation Base: Square feet of space Equipment depreciation Insurance Cubic feet of space Annual Cost $196,000 30,000 Utilities Electricity Waste disposal Water and sever Cable TV and phone Heat General administration: Administrator Administrative staff Office supplies Community outreach Public education Budgeted number of employees 226,000 Budgeted dollars of patient billings 46,000 School physical exams Shown below are the amounts of each cost allocation base associated with each division. Patient Square Feet Cubic Feet Number of Employees Billings General Medicine Division 14,720 161,000 30 $2,125,000 Surgical Division 9,660 115,000 20 1,275,000 Medical Support Division 11,960 96,600 20 850,000 Administrative Division Total 9,660 46,000 87,400 460,000 30 0 100 $4,250,000 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? 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 Facilities General Medicine Surgical Medical Support Administrative Total Utilities General Medicine Surgical Medical Support Administrative Total General administration i General Medicine Surgical Medical Support Administrative Community outreach Total Allocation Base Percentage of Total Costs Distributed sq. ft. 32.00% 21.00 26.00 21.00 0 sq. ft. 100.00 % $ 0 cu. ft. % 0 cu. ft. 0.00 % $ 0 empl. % 0 empl. 0.00 % $ 0 billings % General Medicine Surgical Medical Support Administrative Total $ 0 billings 0.00 % $ 0