question 1. need A & B (1&2)

question 2. need A,B & C

The housekeeping services department of Southcoast Health, a multispecialty medical practice, had $100,000 in direct costs in 2020 . These costs must be allocated to Southcoast's three revenue-producing patient services departments using the direct method. Two cost drivers are being considered: (1) patient services revenue generated, and (2) housekeeping services used. The patient services departments generated $5,000,000 in total revenues during 2020 , and to support these clinical activities, a total of 5000 hours of housekeeping services were utilized. A. What is the total value of the cost pool? B. What is the allocation rate if: i. Patient services revenue is used as the cost driver? ii. Hours of housekeeping services is used as the cost driver? Referring back to problem 1 above, assume that there are three (3) patient services departments - internal medicine services, pediatric services, and therapy services. The patient services revenue and hours of housekeeping services are listed below for each of these departments: a. What is the dollar allocation amount (total dollars) to each of the patient services departments if patient services revenue is used as the cost driver? b. What is the dollar allocation amount (total dollars) to each of the patient services departments if hours of housekeeping support is used as the cost driver? c. In your opinion, which of the two cost drivers should be preferred and why