#5. What would be the total expense for the Routine Care department (this is the addition of direct department expenses and allocated indirect costs).

Choice A: $912,750

Choice B: $1,448,000

Choice C: $3,750,000

Choice D: $11,448,000

#6. What do you notice about the allocation of the indirect expenses when this is done properly?

Choice A: The total allocated amount is the same as the beginning indirect total (within a range

of less than 1%)

Choice B: The amount allocated will always be substantially (>10%) greater than the beginning

amount

Choice C: The amount allocated will always be substantially (

amount

Choice D: Not enough information to tell.

#7. What are the different types of allocation techniques

Choice A: direct

Choice B: step-down

Choice C: reciprocal

Choice D: all the above

Department Facilities (support dept) Accounting - Billing (su Total for Support Revenues Expenses Space (square Feet) Number of Procedure S 1,500,000 2,000,000 S 3,500,000 10,000 20,000 30,000 tments Routine Care (patient services) Intensive Care (patient services) Diagnostic Servi Total for Patient Service Gr'ant lotal $30.000,000 $ 10,000,000 $25,000,000 $8.000,000 $20,000,000 6,000,000 S75,000,000 S24,000,000 S75,000,000 S 27.500,000 150.000 100.000 75,000 325,000 355,000 500,000 450,000 375,000 1,325,000 1.325.000 ces (patient services tments