6.4

Allocation Rates Determined. Cost Pool Driver Allocation Rates. Driver Factor

General Admin 2,000,000 50,000,000 .0400 per salary dollars

financial Service 3,000,000 50,000,000 .06 per patient service revenue

facilities 5,000,000 600,000 8.3 per housekeeping

total cost pool 10,000,000 100,600,000 8

Use the allocation rates and then use each allocation and cost driver amounts below

Allocation Table

Support Departments Rate Routine Care Intensive Care Diagnostic Services Other Services Total

General Admin 0.04 1,200,000 160,000 240,000 400,000 ?

Facilities 8.33 3,332,000 333,200 500,550 834,250 ?

Financial Services 0.06 1,800,000 240,000 360,000 600,000 ?

Total indirect Cost ? ? ? ? ?

Cost Driver Amounts

Per dollar salaries 12,000,000 5,000,000 6,000,000 7,000,000

Per housekeeping hour 150,000 30,000 15,000 25,000

Per dollar of patient revenue 30,000,000 4,000,000 6,000,000 10,000,000