11. Using the Step-Down Method for this problem. Accounting - Billing has a total cost pool of $2,112,600. The cost driver has been determined to number of procedures. What would the allocation rate be for Accounting/Billings? (Hint: round to the third decimal place)

Choice A: $11.31 per procedure

Choice B: $1.565 per procedure

Choice C: $3.32 per procedure

Choice D: $8.00 per procedure

#12. Using the Step-Down Method for this problem. Now that you have calculated the new allocation rate for Accounting/Billing (use your choice from #11 this will have to be rounded out to 3 digits). What is the amount of Accounting/Billings related expense that you would allocate to the Routine Care Department? (Hint: round to the second decimal place)

Choice A: $260,050

Choice B: $540,300

Choice C: $782,500

Choice D: $1,005,000

#13. Using the Step-Down Method for this problem. What would be the total expense for the Routine Care department (this is the addition of direct department expenses and allocated indirect costs). (Hint: round to the second decimal place)

Choice A: $695,750

Choice B: $1,483,000

Choice C: $11,486,250

Choice D: $29,919,780

Using the same numbers as we will calculate using the Step-Down Method. In this example, it has been determined to step-down Facilities expenses to the rest of the support departments and to the direct or patient service areas. Revenues Department Facilities (support dept) Accounting - Billing (support dept) Total for Support Departments Expenses $ 1,800,000 2,000,000 $ 3,800,000 Space (square Feet) Number of Procedures 10,000 20,000 30,000 Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Departments Grant Total $ $ $ $ 30,000,000 $ 25,000,000 $ 20,000,000 $ 75,000,000 $ 75,000,000 $ 10,000,000 9,000,000 7,000,000 26,000,000 29,800,000 125,000 100,000 75,000 300,000 330,000 500,000 450,000 400,000 1,350,000 1,350,000