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27 Assume that the three patient services departments are Adult Services, Pediatric Services, and Other Services. The patient services revenue and hours of housekeeping services for each department are as 28 follows 29 30 31 32 Department Adult Services Pediatric Services Other Services Total Revenue $ 3,000,000 1,500,000 1,500 3,000 500 $ 5,000,000 34 35 36 37 38 What is the dolar allocation to each patient services department if patient services revenue 39 40 d. is used as the cost driver? Complete the Table below Allocation Allocation (S Rate Amount) 41 42 43 Department Adult Services Pediatric Services Other Services Total $ 3,000,000 1,500,000 45 $ 5,000,000

56 What is the dollar difference in the amount allocated to each department between the two cost drivers when changing from revenues as the cost driver to hours of housekeeping support as f. the driver? Complete the Table below 57 58 Allocation (S Amount) using patient services revenue Allocation (S Amount) using hours of housekeepi Difference (S Amount) 59 60 61 62 63 64 Adult Services Pediatric Services Other Services Which of the two drivers patient services revenue vs. hours of housekeeping services is Ready

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1 A Let assume that amount of housekeeping charges to be allocataed is 500000 d) Revenue Housekeeping hours Allocation Alloca1 A Let assume that amo d) Housekeeping hours 1500 3000 500 -SUM(E6:E8) Allocation rate -D6/SDS9 Allocation ( amount) Adult services Pediatric services Other services 3000000 1500 500000 SUM(D6:D8) 000 -500000 10 12 13 f) 14 15 16 17 18 19 20 21 Allocation (S amount) using housekeeping hours -500000 E6/SE$9 -500000 E7/SES9 -500000 E8 SES9 -SUM(E13 E15) Allocation ( amount) using revenue 300000 Adult services Pediatric service 50000 Other services Difference -D13-E13 -D14-E14 D15-E15 SUM(F13:F15) 50000 500000 The house keeping hc

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