Using the Step-Down Method for this problem. How much would Facilities expense be allocated to the Accounting/Billing Department? (Hint: round to the second decimal place) Choice A: Nothing it is an indirect department Choice B: $75,000 Choice C: $92,000 Choice D: $150,000

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 direct or patient service areas. Revenues Expenses S Department Facilities (support dept) Accounting - Billing (support dept) Total for Support Departments Space (square Fee Number of Procedures 10.000 20.000 30,000 2.400.000 5.000.000 7,400,000 $ S A 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 S $ 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 1,350,000 1,350,000 #8 ITsing the Ste thod for this problem. Facilities has a total cost pool of $2.400,000. The