4 45 5 D Bennett Clinic has two patient service (mission) departments, internal medicine and pediatrics....

  

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4 45 5 D Bennett Clinic has two patient service (mission) departments, internal medicine and pediatrics. These departments are supported by the finance department, the housekeeping department, and the general administration department. The following data have been assembled by the practice manager. A 6 Department 7 General Administration 8 Finance 9 Housekeeping 10 Internal Medicine 11 Pediatrics 12 345 B Direct Costs $ $ $ $ 200,000 150,000 100,000 500,000 650,000 с # of housekeeping hours # of invoices/bills 30 50 50 100 150 50 20 100 2000 2500 FTES E 2350 15 Assume the clinic uses a step-down method of cost allocation with general administration first, finance second and housekeeping third. The practice manager has determined that the cost driver for housekeeping is the number of housekeeping hours, the cost driver for finance is the number of invoices/bills generated, and the cost driver for general administration is FTES. Using the step-down method, allocate all support (service) department costs to the patient service (mission) departments and determine each mission department's total (full) costs. A partial template has been provided below 13 for your convenience. 14 15 LL F 16 Allocation Bases (Cost Drivers) 17 18 19 20 21 22 23 24 25 26 27 28 Allocation Rates 29 30 31 32 33 34 35 Step-Down Method Allocation 36 37 38 39 General administration 40 Finance 41 Housekeeping 42 43 Internal Medicine 44 Pediatrics 45 46 47 B General Admin General Admin Direct Costs Finance Finance General Admin D Housekeeping Housekeeping Indirect Allocations Finance E Housekeeping F Full cost G 4 45 5 D Bennett Clinic has two patient service (mission) departments, internal medicine and pediatrics. These departments are supported by the finance department, the housekeeping department, and the general administration department. The following data have been assembled by the practice manager. A 6 Department 7 General Administration 8 Finance 9 Housekeeping 10 Internal Medicine 11 Pediatrics 12 345 B Direct Costs $ $ $ $ 200,000 150,000 100,000 500,000 650,000 с # of housekeeping hours # of invoices/bills 30 50 50 100 150 50 20 100 2000 2500 FTES E 2350 15 Assume the clinic uses a step-down method of cost allocation with general administration first, finance second and housekeeping third. The practice manager has determined that the cost driver for housekeeping is the number of housekeeping hours, the cost driver for finance is the number of invoices/bills generated, and the cost driver for general administration is FTES. Using the step-down method, allocate all support (service) department costs to the patient service (mission) departments and determine each mission department's total (full) costs. A partial template has been provided below 13 for your convenience. 14 15 LL F 16 Allocation Bases (Cost Drivers) 17 18 19 20 21 22 23 24 25 26 27 28 Allocation Rates 29 30 31 32 33 34 35 Step-Down Method Allocation 36 37 38 39 General administration 40 Finance 41 Housekeeping 42 43 Internal Medicine 44 Pediatrics 45 46 47 B General Admin General Admin Direct Costs Finance Finance General Admin D Housekeeping Housekeeping Indirect Allocations Finance E Housekeeping F Full cost G

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Allocation Bases Cost Drivers Finance Housekeeping Internal Medicines Pediatrics Allocation Rate Dir... View the full answer