6.3 its and four patient services partments are as follows: The following data pertain to problems 6.3 trong 6....

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6.3

its and four patient services partments are as follows: The following data pertain to problems 6.3 trong 6.6: St. Benedicts

CCSS Problems 7.1 Assume that the man the managers of Fort Winston Hospital are setting the tpatient service. Here are releva

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Answer #1

6.3)

A.) Compute appropriate allocation rates
Overhead	Cost	Cost driver	Driver units	Appropriate allocations rates
General administration cost	$2,000,000	Patient revenue service	50,000,000	$0.04
Financial service cost	$5,000,000	Patient revenue service	50,000,000	$0.1
Facilities service cost	$3,000,000	Square feet	600,000	$5
Total	$10,000,000
B.) Allocations of overhead costs to patient service department
Support departments	Patient service department
	Routine care	Intensive care	Diagnostic service	Other services	Total
Salary dollars	$12,000,000	$5,000,000	$6,000,000	$7,000,000	$30,000,000
Patient revenue service	$30,000,000	$4,000,000	$6,000,000	$10,000,000	$50,000,000
Housekeeping labor	$150,000	$30,000	$15,000	$25,000	$220,000
General administrative cost ($0.04) x Patient Revenue	$1,200,000	$160,000	$240,000	$400,000	$2,000,000
Financial service cost ($0.1) x Patient Revenue	$3,000,000	$400,000	$600,000	$1,000,000	$5,000,000
Facilities service cost ($5) x Space (square feet)	$2,000,000	$200,000	$300,000	$500,000	$3,000,000
Total overhead allocated	$48,350,000	$9,790,000	$13,155,000	$18,925,000	$90,220,000

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