Question: #5). Use the information for St. Anthony's. Use the direct method of cost allocation. Assume that the hospital uses salary dollars as the cost driver

 #5). Use the information for St. Anthony's. Use the direct method

#5). Use the information for St. Anthony's. Use the direct method of cost allocation. 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 $1,000,000 is related to payroll and personnel management activities. What is the total of indirect costs allocated to Routine Services? Hint: You have already figured out the two Financial Service Allocation Rates - all we have to do is to calculate the rates for General Administration and Facilities and then apply the rates to the Patient Services Departments. Do one step at a time and create a table. #6). Use the information for St. Anthony's. Use the direct method of cost allocation. 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 $1,000,000 is related to payroll and personnel management activities. What is the total of indirect costs allocated to Other Services? Hint: You have already figured out the two Financial Service Allocation Rates - all we have to do is to calculate the rates for General Administration and Facilities and then apply the rates to the Patient Services Departments. Do one step at a time and create a table

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