The following data pertain to problem 6.3:

St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follows:

General Administration $2,000,000

Facilities $5,000,000

Financial Services $3,000,000

Selected data for the three support and four patient services departments are shown below:

Patient Space Services (square Housekeeping Salary Department Revenue feet) Labor Hours Dollars Support: General 10,000 2,000 $ 1,500,000 Administration Facilities 20,000 5,000 3,000,000 Financial Services 15,000 3,000 2,000,000 Total 45,000 10,000 $ 6,500,000 Patient Services: Routine Care $30,000,000 400,000 150,000 $12,000,000 Intensive Care 4,000,000 40,000 30,000 5,000,000 Diagnostic Services 6,000,000 60,000 15,000 6,000,000 Other Services 10,000,000 100,000 25,000 7,000,000 Total $50,000,000 600,000 220,000 $30,000,000 Grand Total $50,000,000 645,000 230,000 $36,500,000EXHIBIT 6.7 Kensington Hospital: Final Allocations Patient Services Department Support Department (allocation rate) Routine Core Laboratory Radiology Financial Services ($0.05556) * $16,000,000 - $ 888,960 * $5,000,000 - $ 277,800 * $6,000,000 - $ 333.360 Facilities ($12.64) X 199,800 = 2.525.472 X 39,600 = 500,544 X 61,200 = 773.568 Housekeeping ($17.58) X 76,000 - 1,336,080 X 6,000 - 105.480 X 9,000 - 158.220 Administration ($0.432) X 5.709,000 - 2,466,288 X 2,035,000 - 879,120 X 2.439,000 - 1,053,648 Personnel ($0.250) X 5.709,000 = 1,427.250 X 2,035,000 = 508,750 x 2,439,000 = 609.750 Total indirect costs $ 8,644.050 $ 2.271,694 $ 2,928.546 Direct costs $ 5.500,000 5 3.300,000 $ 2,800,000 Total costs $ 14,144.050 $ 5.571.694 $ 5.728.546 Total indirect costs - $8,644.050 + $2,271,694 + $2,928,546-$13,844.290. Total costs - $14,144,050+ $5.571,694 + $5,728.546-$25,444,290. Note: Because of rounding in the allocation process, the totals here differ slightly from the values contained in Exhibit 6.3