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St. Benedict Hospital has three primary revenue producing departments (Inpatient, Outpatient, Clinic) with the following revenue and cost projections. In order to better determine the
St. Benedict Hospital has three primary revenue producing departments (Inpatient, Outpatient, Clinic) with the following revenue and cost projections. In order to better determine the departments' overall true cost and profit margin, management wants to allocate service department costs as overhead allocations to these departments. PROJECTED REVENUES AND COSTS PER DEPARTMENT Management considered various cost drivers and made the determiniation to use the following as the most relevant for each service department
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