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Allocation Direct Method

10 Revenues: 12 13 Adult Medicine 14 Obstetrics 15 Pediatrics 16 Total revenues $ 12,000,000 6,000,000 2,000,000 $ 20,000,000

32 Allocation Matrix 33 34 Services Percentage of Services Provided by 35 Provided to Administration Facilities Finance 36 37

44 45 H 1 46 47 48 ALLOCATION CALCULATIONS 49 50 PART 1 51 DIRECT METHOD: Patient Service 52 Adult Medicine Obstetrics Pediat

Part 1 use provided info to complete table using direct method.
part 2 use provided data to complete table using step-down method.

8 INPUT DATA KEY OUTPUT 10 Revenues 11 Profit and Loss Statements 12 PART 3 (INSERT INFORMATON FROM INPUT DATA AND PARTS 1 AN

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Answer #1

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PART 1 DIRECT METHOD Administration allocation Facilities Allocation Finance Allocation Total Adult Patient Obstetrics Pediat

DIRECT METHOD Administration allocation Facilities Allocation Finance Allocation Adult Patient Obstetrics Pediatrics Medicines Services Total $437,500 $250,000 $312,500 $1,000,000 $2,847,059 $517,647 $1,035,294 $4,400,000 $1,000,000 $500,000 $300,000 $1,800,000 $4,284,559 $1,267,647 $1,647,794 $7,200,000 STEP-DOWN METHOD Administration Facilities Finance Adult Medicines Obstetrics Pediatrics Total Cost -$1,000,000 Administration allocation Facilities Allocation Finance Allocation $100,000 -$4,500,000 $100,000 $473,684 -$2,373,684 $350,000 $200,000 $250,000 $800,000 $2,605,263 $473,684 $947,368 $4,026,316 $1,318,713 $659,357 $395,614 $2,373,684 $4,273,977 $1,333,041 $1,592,982 $7,200,000 PROFIT AND LOSS STATEMENTS DIRECT METHOD Aggregate Revenues Direct Costs Indirect Costs Total Costs Pre-tax profit Adult Obstetrics Pediatrics Medicines $12,000,000 $6,000,000 $2,000,000 $6,000,000 $3,600,000 $1,200,000 $4,284,559 $1,267,647 $1,647,794 $10,284,559 $4,867,647 $2,847,794 $1,715,441 $1,132,353 $847,794 $20,000,000 $10,800,000 $7,200,000 $18,000,000 $2,000,000 STEP-DOWN METHOD Revenues Direct Costs Indirect Costs Total Costs Pre-tax profit Adult Obstetrics Pediatrics Medicines $12,000,000 $6,000,000 $2,000,000 $6,000,000 $3,600,000 $1,200,000 $4,273,977 $1,333,041 $1,592,982 $10,273,977 $4,933,041 $2,792,982| $1,726,023 $1,066,959 $792,982 Aggregate $20,000,000 $10,800,000 $7,200,000 $18,000,000 $2,000,000

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