Using the step down method, prepare the cost allocation desired by the hospital
ID: 2365028 • Letter: U
Question
Using the step down method, prepare the cost allocation desired by the hospital administrator.
Food service- Variable- Meals served Fixed- Peak-period needs
Amdinistrative Services-Variable- Files Processed Fixed- 10% X-ray Services, 20% Outpatient Clinic, 30% OB Care, and 40% General Hospital
X-ray Services- Variable-X-rays taken Fixed- Peak-period needs
Food Services- Variable- $27,700, Fixed-$30,000 Total: $57,700
Admin. Serv.-Variable- $5,550, Fixed- $20,000 Total $25,550
X-Ray Serv. Var- $34,650, Fixed- $59,100 Total: $93,750
Outpatient Clinic- Var. $10,500, Fixed- $27,000 Total: $37,500
OB Care-Var. $14,000, Fixed- $91,000 Total: $105,000
General Hospital- Var. $50,500, Fixed-$341,000 Total: $391,500
Total: Var- $142,900 Fixed -$568,100 Total: $711,00
Meals served: Admin Services: 2,000, X-ray Services: 200; OB Care 4,500; General Hospital: 21,000; Total: 27,700
Percent of peadk-period Food Services needs: Admin Services: 5%, X-ray: 4%, OB Care:17%, General Hospital:74%, Total: 100%
Files Processed: X-Ray services, 1,100; Outpatient: 3,000; OB Care: 500; General Hospital:10,500; Total: 15,100
X-rays taken: Outpatient: 1,400; OB Care: 350; General Hospital: 7,100; Total: 8,850
Percent of peak-period X-ray Service needs: Outpatient: 14%; OB Care: 10%; General Hospital: 76%; Total: 100%
Explanation / Answer
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