Using the same numbers as we will calculate using the Step-Down Method. In this example, it has been determined to step-down Facilities expenses to the rest of the support departments and to the direct or patient service areas. Department Facilities (support dept) Accounting Billing (support dept) Total for Support Departments Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Departments Grant Total Revenues Expenses Space (square Feet) Number of Procedures S 1,800,000 10,000 S 2,000,000 20,000 3.800,000 30,000 $ 30,000,000 $ 10,000,000 125,000 500,000 S S 25,000,000 $ 20,000,000 $ $ 75,000,000 S 9,000,000 100,000 450,000 7,000,000 75,000 400,000 26,000,000 300,000 1,350,000 $ 75,000,000 S 29,800,000 330,000 1,350,000 # 10. Using the Step-Down Method for this problem. After the allocation of Facilities to the Accounting/Billing department - what would be the new cost pool for the Accounting/Billing Department? (Hint: round to the second decimal place) Choice A: $2,112,600 Choice B: $3,000,0000 Choice C: $5,000,000 Choice D: $100,000,000,000 (Hint - this is not the correct answer) 11. Using the Step-Down Method for this problem. Accounting - Billing has a total cost pool of $2,112,600. The cost driver has been determined to number of procedures. What would the allocation rate be for Accounting/Billings? (Hint: round to the third decimal place) Choice A: $11.31 per procedure Choice B: $1.565 per procedure Choice C: $3.32 per procedure Choice D: $8.00 per procedure