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 $165,379

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 $165,379 Facilities 445,981 Financial Services 335.434 Selected data for the three support and four patient services departments are: Space (Square Housekeeping Labor Feet) Hours Salary Dollars 890 208 152.288 4.183 Patient Services Department Revenue Support General Administration Facilities Financial Services Patient Services Routine Care $3,309,808 Intensive Care 385,568 Diagnostic Services 539.248 Other Services 932,384 22.724 1,450 2,747,092 175,037 340 44,000 3,785 16,012 3,143 1,363 1,127.972 598,259 687,097 774,464 6,516 11,423 2.210 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 to Facilities? (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.) 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 $165,379 Facilities 445,981 Financial Services 335.434 Selected data for the three support and four patient services departments are: Space (Square Housekeeping Labor Feet) Hours Salary Dollars 890 208 152.288 4.183 Patient Services Department Revenue Support General Administration Facilities Financial Services Patient Services Routine Care $3,309,808 Intensive Care 385,568 Diagnostic Services 539.248 Other Services 932,384 22.724 1,450 2,747,092 175,037 340 44,000 3,785 16,012 3,143 1,363 1,127.972 598,259 687,097 774,464 6,516 11,423 2.210 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 to Facilities? (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 with AI-Powered 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

Healthcare Finance An Introduction To Accounting And Financial Management

Authors: Louis C. Gapenski

4th Edition

1567932800, 978-1567932805

More Books

Students also viewed these Finance questions