This is an organizational chart for a hospital. The following table shows the cost application bases used to distribute various costs.

Cost Pool	Cost Allocation Base	Annual Cost
Facilities	Square feet of space	$380,000
Utilities	Cubic feet of space	$48,000
General Administration	Budget number of employees	$440,000
Community Outreach	Budgeted dollars of patient billing	$80,000

Allocation base associated with each division

	Square Feet	Cubic Feet	Number of Employees	Patient Billing
General Medicine	15,000	135,000	30	$4,000,000
Surgical Division Support	8,000	100,000	20	$2,500,000
Medical Support	9,000	90,000	20	$1,500,000
Administrative Division	8,000	75,000	30	0
Total	40,000	400,000	100	$8,000,000

What is the appropriateness of patient billing as the basis for distributing community outreach costs to the hospital division? Is there a better allocation base?