The houskeeping services department of ABC Hospital had $250,000 in direct costs
ID: 2704248 • Letter: T
Question
The houskeeping services department of ABC Hospital had $250,000 in direct costs during 2006. these costs must be allocated to ABC's three revenue-producing patient services departments using the idrect method. Two cost drivers are under consideration: patient services revenue and hours of housekeeping services utilized. the patient services departments generrated $8 million in total revenues during 2006, and to support these clinical activities, used 7,000 hours of housekeeping services.
The allocation rate if patient services revenue is used as the cost driver, is ___________ and is _________ if hours of housekeeping services is used as the cost driver.
A.) $32 per revenue dollar, $1142 per housekeeping hour
B.) .032 per revenue dollar, $35.71 per housekeeping hour
C.) .20 per revenue dollar, $.05 per housekeeping hour
D.) none of the above
Explanation / Answer
A.) $32 per revenue dollar, $1142 per housekeeping hour
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.