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 Surgical dministration Division Medical Support Division Division Nursing adiology Nutrition Housekeeping Maintenance Department Department Department Department Laboratory Department Patient Kitchen Dietitians Section Service Patient Cafeteria Food Service The following table shows the cost allocation bases used to distribute various costs among the hospital's divisions. Cost Pool Cost Allocation Base Annual Cost Facilities: Building dept Square feet of space $207, 000 Equipment depr Insurance depreciation stress ity Cubic feet of space 41,000 Waste disposal Cable TV and phone Heat neral administration: Administrator Budgeted number of employees 237, 000 Administrative staff Office supplies Community outreach: Public education Budgeted dollars of patient billings 57,000 School physical exams Shown below are the amounts of each cost allocation base associated with each division. square Feet Employee Patient General Medicine Division 19, 380 190,500 Medical Support Division 14 820 1 , 280 , 808 Administrative Division 11, 408 102, 680 Total 57,000 570, 060 5 4,800, 080 Required: 1. Prepare a table that distributes each of the costs listed in the preceding table to the hospital's divisions. eness of patient billings as the basis for distributing community outreach costs to the hospital's divisions, what would be the 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. ( trial places. (1.e., 0.1234 should be entered as 12.34)) Cost Pool Division Allocation Base Percentage of Total Distributed Facilities General Medicine sq. ft. Surgical Medical Support Administrative Total sq. it. Utilities General Medicine Surgical Medical Support Administrative Total General administration General Medicine Templ. Surgical Medical Suppor Administrative Total empl Community outreach General Medicine bilings Surgical Medical Support Administrative Total Required: he preceding table to the hospital's divisions. would be the best allocation base ? eness of patient billings as the basis for distributing community outreach costs to the hospital's divisions. what 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 1 Required 2 Required 3 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? The wage earnings of each division's personnel. This base would reflect the employee costs for which work has been done for the program. The number of hours spent by each division's personnel in community outreach activities. This base would be more reflective of the actual contribution of each division to the program. The number of employees in each division. This base would be more reflective of the actual contribution of each division to the program. Complete this question by entering your answers in the tabs below . Required 1 Required 2 Required 3 What are the benefits of allocating utility costs to the divisions? (Select "Yes" if the statement is a benefit of allocating utility [costs to the divisions, and " Now if it is not a benefit.). Third-party reimbursements, such as those from insurance companies, are more accurate. Helps decrease overall costs. It improves the profitability position of the various divisions. Division managers are able to reflect the costs when pricing services. It brings about a good coordination among the various divisions in the usage of utilities. The total cost of running the division is reflected
