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 Revenues Inpatient Services $18,500,000 Outpatient Services 32,000,000 Clinic Services 12,250,000 Total revenues $62,750,000 Direct Costs Inpatient Services $8,250,000 Outpatient Services 16,500,000 Clinic Services 8,500,000 Total costs $33,250,000 Service Department Costs Financial Services $4,000,000 Facilities 7,500,000 Housekeeping 5,600,000 Administration 8,500,000 Total overhead costs $25,600,000 Total Costs $58,850,000 Projected Profit $3,900,000 Management considered various cost drivers and made the determiniation to use the following as the most relevant for each service department: Department Cost Driver Financial Services Patient revenue Facilities Square feet Housekeeping Housekeeping hrs Administration Salary dollars Utlization information for allocations: Cost Driver Inpatient Outpatient Clinic Total Utilization Square Feet 210,000 180,000 65,000 455,000 Housekeeping Hours 80,000 58,000 26,000 164,000 Salary Dollars $6,500,000 $12,500,000 $5,500,000 $24,500,000 Based upon this information, complete the following, filling in each highlighted cell. Be sure to use formulas to show your work. Use Exhibit 6.6 as a guideto complete this table and calculate the allocation rate. Department Cost Pool Amount Cost Driver Total Utilization Allocation Rate Financial Services Facilities Housekeeping Administration Use Exhibit 6.7 as a guide to complete the indirect cost allocations to each patient service area. Indirect Cost Allocations Inpatient Outpatient Clinic Total Financial Services Facilities Housekeeping General Administration Total Indirect Costs Using Exhibit 6.8 as a guide, complete the P&L projections below. P&L Revenue Direct Costs Indirect Costs Total Costs Profit using only Direct Costs Profit margin % using Direct Costs only Profit using Total Costs Profit margin % using Total Costs