This data will be used for the following three questions

The Maintenance Department of Sun Valley Orthopaedics & Sports Clinic had $300,000 in direct costs last year. These costs must be allocated to the clinics three patient services departments using the direct allocation method. Two cost drivers are under consideration: patient services revenue and labor hours (which includes housekeeping and routine maintenance). Assume the following about the profit centers:

Department	Revenue	Maintenance Hours
General Orthopaedics	$5,000,000	3500
Physical Therapy	$3,000,000	5000
Other Services	$1,000,000	1500
Total	$9,000,000	10,000

34.	Answer all parts of the question and please label your answers clearly. a What is the Cost Pool?(2 points) b What is the allocation rate for patient services revenue? (2 points) c What is the allocation rate for labor hours? (2 points)

	Answer all parts of the question and please label your answers clearly. d What is the dollar allocation to each profit center if patient services revenue is the cost driver?(3 points) e What is the dollar allocation to each profit center if labor hours is the cost driver?(3 points) f What is the mathematical difference in the allocation to each profit center between the two drivers?(3 points)

36.	Which of the two drivers is better? Why? (2 points)