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 hospitals organization is shown in the following chart.

Rocky Mountain General Hospital General Medicine Division Surgical Division Medical Support Division Administrative Division Nursing Department Radiology and Laboratory Department Nutrition Department Housekeeping Department Maintenance Department Kitchen Registered Dietitians' Section Patient Food Service Cafeteria Patient Food Service The following cost information has been compiled for August. Budget August Actual YTD YTD August Cafeteria: Food servers' wages Paper products Utilities Maintenance Custodial Supplies Patient Food Service Registered Dietitians' Section Kitchen Nursing Dept. Radiology/Laboratory Dept. Housekeeping Dept. Maintenance Dept. General Medicine Division Surgical Division Administrative Division $ 8,000 4,500 1,000 400 1,100 1,200 17,000 7,500 31,000 70,000 18,000 10,000 13,000 210,000 140,000 50,000 $ 64,000 36,000 8,000 3,200 8,800 9,600 136,000 60,000 248,000 560,000 144,000 80,000 104,000 1,680,000 1,120,000 400,000 $ 9,000 4,400 1,050 100 1,100 900 18,500 7,500 29,400 75,000 18,100 11,600 6,000 204,000 141,000 53,500 $ 72,000 36,200 8,100 1,100 8,600 9,600 137,000 60,000 246,000 580,000 144,000 86,000 77,000 1,670,900 1,115,800 406,000 Required: 1. Prepare a set of cost performance reports. 3. As the Hospital Administrator, which variances in the performance reports would you investigate? Complete this question by entering your answers in the tabs below. Required 1 Required 3 Prepare a set of cost performance reports. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance.)) Variance Flexible Budget August Year to Date Actual Results August Year to Date August Year to Date Rocky Mountain General Hospital General Medicine Division Surgical Division Medical Support Division Administrative Division Total cost Medical Support Division Nursing Department Radiology and Laboratory Department Nutrition Department Housekeeping Department Maintenance Department Total cost Nutrition Department Registered Dietitians' Section Food Service Section Kitchen Total cost Food Service Section Patient Food Service Cafeteria Total cost Cafeteria Food servers wages Paper products Utilities Maintenance Custodial Supplies Total cost Required 13 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 $ 192,000 Cubic feet of space 26,000 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 222,000 Budgeted dollars of patient billings 42,000 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 15,120 8,400 10,080 8,400 42,000 Cubic Feet 151,200 100,800 88,200 79,800 420,000 Number of Employees 35 15 15 35 Patient Billings $ 2,430,000 1,215,000 405,000 100 $4,050,000 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)) Cost Pool Division Allocation Base Percentage of Total 96 Costs Distributed Facilities sq. ft. General Medicine Surgical Medical Support Administrative Total 0 sq. ft. 0.00% S 0 Utilities cu. ft. 96 General Medicine Surgical Medical Support Administrative Total O cu. ft. 0.00 % $ 0 General administration empl 96 General Medicine Surgical Medical Support Administrative Total O empl. 0.00% S 0 Community Outreach billings 96 General Medicine Surgical Medical Support Administrative Total S 0 billings 0.00 % S 0