South Lancaster Clinic, a multispecialty practice in Boston, Massachusetts, has three revenue-producing patient services departments and one support department. The direct cost of the support department is $100,000 which must be allocate to the three revenue-producing patient services departments using the direct method. Two cost drivers are under consideration: patient services revenue and hours of support services used. The patient services revenue and hours of support services used for each department are as follows

	Revenue	Support Service Hours
Adult Services	$3,000,000	1,500
Pediatric Services	$1,500,000	3,000
Other Services	$500,000	500
Total	$5,000,000	5,000

a. What is the dollar allocation to each patient services department if patient services revenue is selected as the cost driver?

b. What is the dollar allocation to each patient services department if hours of support services used is selected as the cost driver?

c. Which of the two drivers is better? Please explain.