Question
The Housekeeping Mercy Hospital has direct costs of $290,000. The hospitals four patient services departments utilize the following amounts of space: Department A 2,000 square
The Housekeeping Mercy Hospital has direct costs of $290,000. The hospitals four patient services departments utilize the following amounts of space: Department A 2,000 square feet Department B 4,000 square feet Department C 6,000 square feet Department D 8,000 square feet Assuming that the cost driver for housekeeping costs is the amount of occupied space, using the direct method of cost allocation, what is the allocation rate for housekeeping costs (round to two decimal places)?
Group of answer choices
$14.50 per square foot
$0.07 per square foot
$29.00 per square foot
18.20 per square foot
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