6.7 a & b only

please write out so I can follow. No pictures. New problem.

The following data pertain to problems 6.7 and 6.8: St. Luke's Hospital has three support departments and four patient services Selected data for the three support and four patient services departments a Healthcare $4,000,000 5,000,000 4,000,000 follows: departments. The direct costs to each of the support departments are as General Administration Maintenance Employee Benefits are shown below: Patient Services Revenue Space (square feet) Number of Full-Time Equivalent Employees Salary Dollars 8,000 15 $ 2,500,000 10,000 7,000 25,000 75 50 140 3,500,000 3,000,000 $ 9,000,000 Department Support: General Administration Maintenance Employee Benefits Total Patient Services: Routine Care Intensive Care Obstetrics Services Other Services Total Grand Total 700 200 150 $40,000,000 500,000 7,000,000 45,000 4,000,000 35,000 12,000,000 200,000 $63,000,000 780,000 $63,000,000 805,000 $18,000,000 6,000,000 4,000,000 8,000,000 $36,000,000 $45,000,000 400 1,450 1,590 space utilization, 6.7 Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration is patient services revenue, the cost driver for maintenance is and the cost driver for employee benefits is the number of full-time equivalent employees. a. What are the appropriate allocation rates? b. Use an allocation table similar to Exhibit 6.7 to allocate the hospital's overhead costs to the patient services departments. 6.8 Assume that the hori