Homework answers / question archive / Selected data for the three support and four patient services departments are shown below: Department Patient Services Revenue Space (Square Feet) Housekeeping Labor Hours Salary Dollars   Support: 10,000 2,000 1,500,000   General Administration   Facilities 20,000 5,000 3,000,000   Financial Services 15,000 3,000 2,000,000   Total 45,000 10,000 $ 6,500,000   Patient Services:   Routine Care $30,000,000 400,000 150,000 $12,000,000   Intensive Care 4,000,000 40,000 30,000 5,000,000   Diagnostic Services 6,000,000 60,000 15,000 6,000,000   Other Services 10,000,000 100,000 25,000 7,000,000   Total $50,000,000 600,000 220,000 $30,000,000   Grand Total $50,000,000 645,000 230,000 $36,500,000   Assume that the hospital uses the direct method for cost allocation

Selected data for the three support and four patient services departments are shown below: Department Patient Services Revenue Space (Square Feet) Housekeeping Labor Hours Salary Dollars   Support: 10,000 2,000 1,500,000   General Administration   Facilities 20,000 5,000 3,000,000   Financial Services 15,000 3,000 2,000,000   Total 45,000 10,000 $ 6,500,000   Patient Services:   Routine Care $30,000,000 400,000 150,000 $12,000,000   Intensive Care 4,000,000 40,000 30,000 5,000,000   Diagnostic Services 6,000,000 60,000 15,000 6,000,000   Other Services 10,000,000 100,000 25,000 7,000,000   Total $50,000,000 600,000 220,000 $30,000,000   Grand Total $50,000,000 645,000 230,000 $36,500,000   Assume that the hospital uses the direct method for cost allocation

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Selected data for the three support and four patient services departments are

shown below:

Department Patient Services Revenue Space (Square Feet) Housekeeping Labor Hours Salary Dollars

 

Support: 10,000 2,000 1,500,000

 

General

Administration

 

Facilities 20,000 5,000 3,000,000

 

Financial Services 15,000 3,000 2,000,000

 

Total 45,000 10,000 $ 6,500,000

 

Patient Services:

 

Routine Care $30,000,000 400,000 150,000 $12,000,000

 

Intensive Care 4,000,000 40,000 30,000 5,000,000

 

Diagnostic Services 6,000,000 60,000 15,000 6,000,000

 

Other Services 10,000,000 100,000 25,000 7,000,000

 

Total $50,000,000 600,000 220,000 $30,000,000

 

Grand Total $50,000,000 645,000 230,000 $36,500,000

 

Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration and financial services revenue, while the cost driver for facilities is space utilization.

What are the appropriate allocation rates for:

 

General Administration = $

Facilities = $

Financial Services = $