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Wation system, to 6.8 Which is the better services department: Ust allocation process. To keep things Thethod for your illustration.) better cost driver for the

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Wation system, to 6.8 Which is the better services department: Ust allocation process. To keep things Thethod for your illustration.) better cost driver for the costs of a hospital's financial ment: patient services department revenues or numbet ed? Explain your rationale. rvice of bills generated? Explain yo Problems keeping services department of Ruger Clinic, a specialty practice in Toledo, Ohio, had $100,000 in direct uring 2015. These costs must be allocated to Ruger's three 6.1 The housekeeping services de multispecialty practice in costs during 2015. Thes revenue-producing patient services departments using the di hod. Two cost drivers are under consideration: patient services venue and hours of housekeeping services used. The patient services departments generated $5 million in total revenues during 2015, and to support these clinical activities, they used 5,000 hours of housekeeping services. a. What is the value of the cost pool? b. What is the allocation rate if patient services revenue is used as the cost driver? hours of housekeeping services is used as the cost driver

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