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The following data pertain to problems 6.7 and 6.8 St. Luke's Hospital has three support departments and four patien $4,000,000 5,000,000 4,000,000 departments. The direct

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The following data pertain to problems 6.7 and 6.8 St. Luke's Hospital has three support departments and four patien $4,000,000 5,000,000 4,000,000 departments. The direct costs to cach of the support departments are a t General Administration Maintenance Employee Benefits Selected data for the three support and four patient services departmen shown below: Number of Patient Space Full-Time ue feet) Employees Equivalent Salary Dollars Services (square nt Support General 8,000 15 $2,500,000 Administration 10,000 7,000 25,000 75 50 140 3,500,000 3,000,000 $ 9,000,000 Maintenance O ^ Employee Benefits Total Patient O Routine Care $40,000,000 500,000 Intensive Care 7,000,000 45,000 Obstetrics Services 4,000,000 35,000 700 $18,000,000 6,000,000 4,000,000 Other Services 12,000,000 200,000 400 8,000,000 $36,000,000 200 150 Total Grand Total $63,000,000 780,000 1450 S63,000,000 805,000 1,590 $45,000,000 Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration is patient services reyenue, the cost driver for maintenance is space utilization and the cost driver for employee benefits is the number of full-time equivalent employees. a. What are the appropriate allocation rates? b. Use an allocation table similar to Exhibit 6.7 to allocate the hospital's overhead costs to the patient services departments. Assume that the hospital uses salary dollars as the cost driver for general administration and employee benefits, and space utilization the cost driver for maintenance. a. What are the appropriate allocation rates

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