Question: can you help with the problem 6 . 3 ( a and b ) The following data pertain to problems 6 . 3 through 6
can you help with the problem a and b The following data pertain to problems through :
St Benedict's Hospital has three support departments and four patient services
departments. The direct costs to each of the support departments are as follows;
Selected data for the three support and four patient services departments are
shown below:
Assume that the hospital uses the direct method for cost allocation.
Furthermore, the cost driver for general administration and financial
services is patient services revenue, while the cost driver for facilities is
space utilization.
a What are the appropriate allocation rates?
b Use an allocation table similar to Exhibit to allocate the
hospital's overhead costs to the patient services departments. EXHIBIT
Kensington Hospital: Final Allocations
Note: Because of rounding in the allocation process, the totals here differ slightly from the values contained in Exhibit
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