Question: fill in the blanks using the Step down method allocation if given the following information: Revenues: Adult Medicine $12,000,000 Obstetrics 6,000,000 Pediatrics 2,000,000 Total revenues

fill in the blanks using the Step down method allocation if given the following information: Revenues: Adult Medicine $12,000,000 Obstetrics 6,000,000 Pediatrics 2,000,000 Total revenues $20,000,000 Direct cost: Patient service Departments: Adult medicine $6,000,000 Obstetrics 3,600,000 Pediatrics $1,200,000 Subtotal $10,800.000 Support Departments: Administration: 1,000,000, Facilities 4,400,000 Finance 1,800,000 Subtotal 7,200,000 Total costs $18,000,000

STEP-DOWN METHOD FOR X, NO AMOUNT SHOULD BE ENTERED.

Administration facilities finance adult medicine obstetrics pediatrics Patient Service total
Administration allocation X $ 100,000 $ 100,000 $ 350,000
facilities allocation X X 473,684 473,684
finance allocation X X X 395,614
total X X X

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