Using the same numbers as we will calculate using the Step-Down Method. In this example, it has been determined to step-down Facilities expenses to the rest of the support departments and to the director patient service areas. Revenues Space (square Feet) Department Facilities (support dept) Accounting - Billing (support dept) Total for Support Departments Number of Procedure Expenses $ 2,400,000 $ 5,000,000 $ 7.400,000 10,000 20,000 30,000 Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Deparments Grant Total $ 30,000,000 $ $ 25,000,000 $ $ 20,000,000 $ $ 75,000,000 S $ 75,000,000 $ 10,000,000 9,000,000 7,000,000 26,000,000 33,400,000 125,000 100,000 75,000 300,000 330,000 510,000 460,000 380,000 1,350,000 1.350,000 Using the Step-Down Method for this problem. Accounting - Billing has a total cost pool of $5,150,000. The cost driver has been determined to number of procedures. What would the allocation rate be for Accounting/Billings? (Hint: round to the second decimal place...also if you could not figure out #10 -1 just gave you the answer in this question) Select one or more: a. $4.54 per procedure b. $3.81 per procedure c. $8.00 per procedure d. $1.565 per procedure Using the same numbers as we will calculate using the Step-Down Method. In this example, it has been determined to step down Facilities expenses to the rest of the support departments and to the director patient service areas. Revenues Space (square Feet) Number of Procedures Department Facilities (support dept) Accounting - Billing (support dept) Total for Support Departments Expenses $ 2,400,000 $ 5,000,000 $ 7,400,000 10,000 20,000 30,000 Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Departments Grant Total $ 30,000,000 $ $ 25,000,000 $ $ 20,000,000 $ $ 75,000,000 $ $ 75,000,000 S 10,000,000 9,000,000 7,000,000 26,000,000 33,400,000 125,000 100,000 75,000 300,000 330,000 $10,000 460,000 380,000 1,350.000 1,350,000 Using the Step-Down Method for this problem. Now that you have calculated the new allocation rate for Accounting/Billing (use your choice from #11) What is the amount of Accounting/Billing's related expense that you would allocate to the Routine Care Department? (Hint: round to the second decimal place) Select one or more: a. $1,943,100 I b. $1,782,500 c. $940,300 d. $260,050 Using the same numbers as we will calculate using the Step Down Method. In this example, it has been determined to step down Facilities expenses to the rest of the support departments and to the director patient service areas. Revenues Space (square Feet) Number of Procedures Department Facilities (support dept) Accounting - Bling (support dept) Total for Support Departments Expenses $ 2,400,000 $ 5.000.000 $ 7.400.000 10,000 20,000 30,000 Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Departments Grant Total $ 30,000,000 $ $ 25,000,000 $ $ 20,000,000 $ $ 75,000,000 $ $ 75,000,000 $ 10,000,000 9,000,000 7.000.000 26.000.000 33,400,000 125,000 100,000 75,000 300,000 330,000 510,000 460,000 380,000 7,350.000 1,350,000 Using the Step-Down Method for this problem. What would be the total expense for the Routine Care department (this is the addition of direct department expenses and allocated indirect costs). (Hint: round to the second decimal place) Select one or more: a. $12,880,600 b. $695,750 c. $11,486,250 d. $1,483,000