Now assume that the hospital uses salary dollars as the cost driver for general

Question

Now assume that the hospital uses salary dollars as the cost driver for general administration, housekeeping labor hours as the cost driver for facilities, and patient services revenue as the cost driver for financial services. Thus, the allocation rates for each support department are:

General Admin. $0.07 per dollar of salaries

Facilities $22.73 per housekeeping hour

Financial Services$0.06 per dollar of revenue

Complete the following allocation table (round to nearest dollar; omit the $ symbol and commas):

Explanation / Answer

Support Deptt. Routine Care Intensive Care Diagnostice Services Other Services General Admin. 12m*0.07= $0.840m 5m*0.07=0.35m 6m*0.07=0.42m 7m*0.07=0.49m Facilities 0.15m*22.73=3.4095m 0.03m*22.73=0.6819m 0.015*22.73=0.34095m   0.025*22.73=0.56825m Financial Services 30m*0.06=1.8m 4m*0.06=0.24m 6m*0.06=0.36m 10m*0.06=0.6m

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.