Question
The patient services revenue and hours of housekeeping services for each department are: Department Revenue Housekeeping Hours Adult Services$3,000,0001,500 Pediatric Services1,500,0003,000 Other Services 500,000 500
The patient services revenue and hours of housekeeping services for each department are:DepartmentRevenueHousekeeping Hours
Adult Services$3,000,0001,500
Pediatric Services1,500,0003,000
Other Services500,000500
Total$5,000,0005,000
(a) need dollar allocation to each patient serv department if patient ser rev is cost drive?
(b) Need dollar allocation to each patient serv department if hours of housekeeping support is cost driver?
(c) Need difference in allocation to each department between two drivers?
(d) Which of the two drivers is better?Why?
Please provide work.
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