D E F H 3 N o P O Queston 18 COMPLETE TAINE (A bolded areas) pouts Patient Seces Department Rouine Care Laboratory Radiology TO Allocated Sabor Department Financial Services laces Housekeeping Administration ) Human Resources Total Indirect costs chrect cost Tot cool What is the results of each montand the rationable? Key Information Cost Drivers Unit Measure Financial Services Facilities Housekeeping Administration Personnel Patient Services Revenue Square Footage Labor Hours Salary Dollars Salary Dollars Patient Services Revenue Square Ft Housekeeping Labor Hours Salary Dollars Routine care Laboratory Radiology $ 24,000,000 $ 15,000,000 $ 14,000,000 185,000 25,000 55,000 72,000 4,200 8,000 $ 12,000,000 3,000,000 3,500,000 Total $ 53,000,000 265,000 84,200 $ 18,500,000 COMPLETE THE TABLE (Need to calculate allocation rate) Overhead Allocation Rates Costa Cost Driver Total utilization Allocation Rate $ $ Financial Services Facilities Housekeeping Administration Human Resources 3,000,000 5,600,000 3,000,000 4,000,000 2,400,000 Patient Services Reveni $ 53,000,000 Square Footage 265,000 Labor Hours 84,200 Salary Dollars $ 18,500,000 Salary Dollars $ 18,500,000 $3,000,000/$53,000 0.06 $5,600,000/265,000 21.13 $3,000,000/84,2400 35.63 $4,000,000/18,500,0 0.22 $2,400,000/18,500,0 0.13 $ $ Cost Allocation Exercise Use the Direot Method Approach Projected Revenues by patient services department Amount Routine care Laboratory Radiology $ 24,000,000 15,000,000 14,000,000 Total Revenues 53,000,000 Projected Costs for all departments: Patient Services Departments (Direct Cost) Routine care Laboratory Radiology 18,000,000 8,000,000 7,000,000 $ Total Costs 33,000,000 Support Services Department (Overhead Costs) Financial Services Facilities Housekeeping Administration Human Resources $ 3,000,000 5,600,000 3,000,000 4,000,000 2,400,000 $ Totals Costs 18,000,000 Total Costs of both patient and support services 51,000,000 Projected Profit $ 2,000,000