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 $213,572

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 $213,572
Facilities 522,309
Financial Services 295,449

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 1,175 235 161,295
Facilities 17,770 4,423 3,293,579
Financial Services 1,405 317 213,253
Patient Services
Routine Care $2,710,650 39,052 14,055 1,269,663
Intensive Care 415,066 4,195 2,771 592,310
Diagnostic Services 592,987 5,098 1,577 520,194
Other Services 1,018,971 10,420 2,055 677,248

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, what percentage of the facilities department costs will be allocated to the intensive care department?

(Do not round intermediate calculations. Enter your final answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)

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

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert Hughes

10th Edition

0073530697, 9780073530697

More Books

Students also viewed these Finance questions