exercise 6–1 page362 (healthcare finance)book

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task exercise 6–1: allocating indirect costs study table 6-1, “example of radiology departments direct and indirect cost totals,” and table 6-2, “example of indirect costs allocated to radiology departments,” and review the chapter text describing how the indirect cost is allocated. this task will change the allocation bases: a) volumes, b) direct costs, and c) number of films. required 1. compute the costs allocated to cost centers #557, 558, 559, 560, and 561 using the new allocation bases shown below. use a worksheet replicating the setup in table 6-2. total the new results. the new allocation bases are: a) volumes 120,000 130,000 70,000 110,000 70,000 500,000 b) direct costs $1,100,000 $700,000 $1,300,000 $1,600,000 $1,300,000 $6,000,000 c) no. of films 400,000 20,000 55,000 25,000 20,000 520,000 2. using a worksheet replicating the setup in table 6-1, enter the new direct cost and the new totals for indirect costs resulting from your work. total the new results.
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