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Single & Dual Rate Cost Allocation Method You are an accountant for General Hospital. General Hospital is seeking a government contract to be reimbursed for

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Single \& Dual Rate Cost Allocation Method You are an accountant for General Hospital. General Hospital is seeking a government contract to be reimbursed for some of the operating costs associated to its maintenance facility. The following data was extracted from the accounting records: Management needs to decide whether to use a single rate or dual rate cost allocation method under the government reimbursed contract. The government contract will reimburse the hospital for their patient care only. They have asked you to calculate and report on the following scenarios. Which scenario do you believe they should use and why? (Note: Be sure to calculate the cost allocation for ALL the departments.) a. If a single-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department? b. If a single-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage? c. If a dual-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage? Based on budgeted usage for fixed operating costs and actual usage for variable operating costs? Single \& Dual Rate Cost Allocation Method You are an accountant for General Hospital. General Hospital is seeking a government contract to be reimbursed for some of the operating costs associated to its maintenance facility. The following data was extracted from the accounting records: Management needs to decide whether to use a single rate or dual rate cost allocation method under the government reimbursed contract. The government contract will reimburse the hospital for their patient care only. They have asked you to calculate and report on the following scenarios. Which scenario do you believe they should use and why? (Note: Be sure to calculate the cost allocation for ALL the departments.) a. If a single-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department? b. If a single-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage? c. If a dual-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage? Based on budgeted usage for fixed operating costs and actual usage for variable operating costs

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