HSCA 3600-Exercise on Departmental Costing & Cost Allocation (Chapter 6) GIVENS: 1. Revenues of a Medical...

Transcribed Image Text:

HSCA 3600-Exercise on Departmental Costing & Cost Allocation (Chapter 6) GIVENS: 1. Revenues of a Medical Patient Care Unit 2. Costs (Direct) of a Medical Patient Care Unit 3. Facilities' Cost Pool (Overhead) 4. Cost Driver for Facilities Cost Allocation: 5. There are 199,800 sq. feet in the Medical Patient Care Unit. There are 100,800 sq. feet in the remainder of the Hospital. There are 300,600 sq. ft. total in the Hospital. What is the allocation rate of Facilities' Cost Pool? _divided by What is the profitability of the Medical Patient Care Unit? Revenue $ 16,000,000 Minus Direct Costs Minus Overhead Profit $ 5,500,000 How much of Facilities' Cost Pool (Overhead) is allocated to the Routine Care Patient Services Unit? 199,800 sq. ft. multiplied by $ 3,800,000 Total Square Feet of Hospital HSCA 3600-Exercise on Departmental Costing & Cost Allocation (Chapter 6) GIVENS: 1. Revenues of a Medical Patient Care Unit 2. Costs (Direct) of a Medical Patient Care Unit 3. Facilities' Cost Pool (Overhead) 4. Cost Driver for Facilities Cost Allocation: 5. There are 199,800 sq. feet in the Medical Patient Care Unit. There are 100,800 sq. feet in the remainder of the Hospital. There are 300,600 sq. ft. total in the Hospital. What is the allocation rate of Facilities' Cost Pool? _divided by What is the profitability of the Medical Patient Care Unit? Revenue $ 16,000,000 Minus Direct Costs Minus Overhead Profit $ 5,500,000 How much of Facilities' Cost Pool (Overhead) is allocated to the Routine Care Patient Services Unit? 199,800 sq. ft. multiplied by $ 3,800,000 Total Square Feet of Hospital

Answer rating: 100% (QA)

Here are the stepbystep calculations 1 The allocation rate of Facilities Cost Pool is Facilities ... View the full answer