Question: using the provided chart answer question B 12. Cost allocation. Use the information in Exhibit 12.12 to answer these questions, b. Joe Ryan, the director

12. Cost allocation. Use the information in Exhibit 12.12 to answer these questions, b. Joe Ryan, the director of laboratories, was given approval to add 250 square feet of space to the lab by expanding into the day-op suite, which lost the space. What will his new fully 576 CHAPTER 12 PROVIDER COST-FINDING METHODS EXHIBIT 12.12 BASIC STATISTICS FOR COST ALLOCATION IN A SURGERY CLINIC USED IN PROBLEM 12.12 CHOR B Dept. costs A Square feet Lab tests Utilities Administration Laboratory Day-Op Suite Cystoscopy Endoscopy Total 4,000 5,000 6,000 3,000 $400,000 $800,000 $900,000 $1,900,000 $700,000 $750,000 $5,450,000 7,000 3,000 3,000 13,000 3,500 000 21,500 allocated expenses be? (Assume that there are no new additional costs incurred by adding the 250 square feet.)
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