4. Assume that $5,000,000 of financial services costs is related to billing and managerial reporting and $2,000,000 is related to payroll and personnel management activities. How much of the $2,000,000 financial services cost pool is allocated to Diagnostic Services?

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

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St. Anthony's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follows: General Administration Facilities Financial Services $3,000,000 $6,000,000 $7,000,000 Selected data for the three support and four patient services departments are shown below: Department Support General Administration Facilities Financial Services Total Patient Services Space Housekeeping Salary Revenues (square feet) Labor Hours Dollars 10,000 2,000 $ 1,500,000 20,000 5,000 $3,000,000 15,000 3.000 $2,000,000 45,000 10,000 6,500,000 Patient Services Routine Care $ 40,000,000 400,000 150,000 $22,000,000 Intensive Care S 4,000,000 40,000 30,000 $5,000,000 Diagnostic Services S 6,000,000 60,000 15,000 $6,000,000 Other Services $ 10,000,000 100,000 25,000 $ 7,000,000 Total S 60,000,000 600,000 220,000 $40,000,000 Grand Total S 60,000,000 645,000 230,000 $46,500,000 St. Anthony's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follows: General Administration Facilities Financial Services $3,000,000 $6,000,000 $7,000,000 Selected data for the three support and four patient services departments are shown below: Department Support General Administration Facilities Financial Services Total Patient Services Space Housekeeping Salary Revenues (square feet) Labor Hours Dollars 10,000 2,000 $ 1,500,000 20,000 5,000 $3,000,000 15,000 3.000 $2,000,000 45,000 10,000 6,500,000 Patient Services Routine Care $ 40,000,000 400,000 150,000 $22,000,000 Intensive Care S 4,000,000 40,000 30,000 $5,000,000 Diagnostic Services S 6,000,000 60,000 15,000 $6,000,000 Other Services $ 10,000,000 100,000 25,000 $ 7,000,000 Total S 60,000,000 600,000 220,000 $40,000,000 Grand Total S 60,000,000 645,000 230,000 $46,500,000

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