Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are: General Administration $237,163

image text in transcribed
St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are: General Administration $237,163 Facilities 591,384 Financial Services 265,573 Selected data for the three support and four patient services departments are: Department Patient Services Revenue Space (Square Feet) Housekeeping Labor Hours Salary Dollars Support General Administration 1,069 156 163,954 Facilities 19,613 5,661 2,734,544 Financial Services 1,427 284 172,667 Patient Services Routine Care $3,499,824 37,947 14,604 1.161,677 Intensive Care 361,277 4,201 2,602 544,155 Diagnostic Services 608,445 6,323 1,657 665,500 Other Services 950,950 11,894 2,299 635,482 Assume that the hospital uses the step-down method for cost allocation, with salary dollars as the cost driver for general administration, housekeeping labor hours as the cost driver for facilities, and patient services revenue as the cost driver for financial services. Assume also that the general administration department provides the most services to other support departments, followed closely by the facilities department. The financial services department provides the least services to the other support departments. Given these data, how many cost dollars will be allocated from General Administration Facil (Do not round intermediate calculations. Enter your final answer rounded to the nearest dollar. Do not enter the dollar sign or commas. For example, if your answer is $1,234, enter as 1234.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The F And I Revolution Finance Reimagined

Authors: Michael A Bennett

1st Edition

1507777221, 978-1507777220

More Books

Students also viewed these Finance questions