Problem 6.3 please include all equations and solutions

Chapter 6: Cost Allocation 21 Housekeeping Hours 1,500 3,000 500 5,000 Revenue Department Adult Services Pediatric Services Other Services $3,000,000 1,500,000 500,000 $5,000,000 Total a. What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver: b. What is the dollar allocation to each patient services department if hours of housekeeping support are used as the cost driver? c. What is the difference in the allocation to each department be- tween the two drivers? d. Which of the two drivers is better? Why? The following data pertain to problems 6.3 through 6.6: St. Benedict's Hospital has three support departments and four patient ser- vices departments. The direct costs to each of the support departments are General Administration Facilities Financial Services $2,000,000 5,000,000 3,000,000 Selected data for the three support and four patient services departments are Patient Services Square Housekeeping Salar Revenue Feet Labor Hours Dollars Space ary Department Support: 2,000 $1,500,000 eneral Administration 10,000 20,000 15,000 45,00010,000 $6,500,000 5,000 3,000 Facilities Financial Services 3,000,000 2,000,000 Total Patient Services: Routine Care Intensive Care $30,000,000 400,000 150,000 $12,000,000 5,000,000 4,000,000 40,000 Diagnostic Services 6,000,000 60,000 10,000,000 100,000 30,000 15,000 25,000 6,000,000 Other Services 7,000,000 $50,000,000 600,000 220,000 $%30,000,000 $50,000,000 645,000 230,000 $36,500,000 Total Grand Total