1) Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the allocation rate for the Financial Services cost pool allocated based on patient services revenues?

2) Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the allocation rate for the Financial Services cost pool allocated based on salary dollars?

3) Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. How much of the $2,000,000 financial services cost pool is allocated to Intensive Care?

4) Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. How much of the $1,000,000 financial services cost pool is allocated to Diagnostic Services?

5) Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the total of indirect costs allocated to Routine Services?

6) Assume that the hospital uses salary dollars as the cost driver for general administration and housekeeping labor hours as the cost driver for facilities. Assume that $2,000,000 of financial services costs is related to billing and managerial reporting and $1,000,000 is related to payroll and personnel management activities. What is the total of indirect costs allocated to Other Services?
 

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St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follows: Department General Administration Facilities Financial Services Selected data for the three support and four patient services departments are shown below: Housekeeping Labor Hours Patient Services Support General Administration Facilities Financ Services Total Revenues Patient Services Routine Care $ 30,000,000 Intensive Care $ 4,000,000 Diagnostic Services $ 6,000,000 Other Services $ 10,000,000 Total Grand Total $ 50,000,000 $ 50,000,000 Space (square feet) 10,000 20,000 15,000 45,000 400,000 40,000 60,000 100,000 $2,000,000 $5,000,000 $3,000,000 600,000 645,000 2,000 5,000 3,000 10,000 Salary Dollars $1,500,000 $ 3,000,000 $ 2,000,000 6,500,000 150,000 $12,000,000 30,000 $5,000,000 15,000 $ 6,000,000 25,000 $7,000,000 220,000 $30,000,000 230,000 $36,500,000 St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follows: Department General Administration Facilities Financial Services Selected data for the three support and four patient services departments are shown below: Housekeeping Labor Hours Patient Services Support General Administration Facilities Financ Services Total Revenues Patient Services Routine Care $ 30,000,000 Intensive Care $ 4,000,000 Diagnostic Services $ 6,000,000 Other Services $ 10,000,000 Total Grand Total $ 50,000,000 $ 50,000,000 Space (square feet) 10,000 20,000 15,000 45,000 400,000 40,000 60,000 100,000 $2,000,000 $5,000,000 $3,000,000 600,000 645,000 2,000 5,000 3,000 10,000 Salary Dollars $1,500,000 $ 3,000,000 $ 2,000,000 6,500,000 150,000 $12,000,000 30,000 $5,000,000 15,000 $ 6,000,000 25,000 $7,000,000 220,000 $30,000,000 230,000 $36,500,000

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