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Wellspring Clinic has two patient services departments: Medicine and Surgery. The patient services departments are supported by the Housekeeping, Financial Services, and Administration departments. The

Wellspring Clinic has two patient services departments: Medicine and Surgery. The patient services departments are supported by the Housekeeping, Financial Services, and Administration departments. The Administration Department of Wellspring Clinic has compiled the following information:
Department Direct Costs Square Feet No. of Employees
Housekeeping $ 200,000 3,000 250
Administration $ 400,000 5,000 500
Financial Services $ 300,000 2,000 100
Medicine $1,000,000 53,000 2,600
Surgery $1,500,000 40,000 2,300
Wellspring has determined that the cost driver for housekeeping is square feet and that the cost driver for Administration and Financial Services is the number of employees. Using the direct method of cost allocation, what is the approximate allocation rate for housekeeping costs (round to the nearest cent)?
$2.15
$1.94
$2.11
$2.00
$5.00

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