Step 1. Determine the Cost Pool (4 points)

Step 2. Define the Cost Driver (4 points)

Step 3. Calculate the Allocation Rate (4 points)

CostDriver

Support Department Cost poolFactor Amount. Allocation rate

General Administration2,000,000Total service revenue$50,000,000$0.04Financial Services3,000,000Total service revenue50,000,000$0.06Facilities 5,000,000. Total square footage. 600,000$8.33Total cost pool$10,000,000 ?

Step 4. Complete the Allocation Table (36 points)

AllocationTable

Support Department. Rate. Routine Care. Intensive Care. Diagnostic Services. Other General Administration. 0.041,200,000160,000240,000 ?

Facilities. 8.33. 3,332,000333,200 ? ?

Financial Services. 0.061,800,000240,000 ? ?

Total indirect costs6,332,000733,200-Patient service revenue30,000,0004,000,0006,000,00010,000,00050,000,000

Square foot utilization

400,00040,00060,000100,000600,000