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 director patient service areas. Revenues Space (square Feet) Number of Procedures Department Facilities (support dept) Accounting - Billing (support dept) Total for Support Departments Expenses 2,400,000 $ 5,000,000 $ 7.400,000 10,000 20,000 30,000 Routine Care (patient services) Intensive Care (patient services) Dia mostic Services (patient services) Total for Patient Service Departments Grant Total $ 30,000,000 $ $ 25,000,000 $ $ 20,000,000 $ $ 75,000,000 $ $ 75,000,000 $ 10,000,000 9,000,000 7,000,000 26.000.000 33.400.000 125.000 100,000 75,000 300,000 330,000 $10,000 460,000 380,000 2.350.000 1.350,000 Using the Step-Down Method for this problem. How much would Facilities expense be allocated to the Accounting/Billing Department? (Hint: round to the second decimal place) Select one or more: a. $75,000 b. Nothing it is an indirect department c. $150,000 d. $92,000 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 director patient service areas. Revenues Space (square Feet) Number of Procedures Department Facilities (support dept) Accounting - Billing (support dept) Total for Support Departments Expenses $ 2,400,000 $ 5,000,000 $ 7,400,000 10,000 20.000 30,000 Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Departments Grant Total $ 30,000,000 $ $ 25,000,000 $ $ 20,000,000 $ $ 75,000,000 $ $ 75,000,000 $ 10,000,000 9,000,000 7,000,000 26,000,000 33,400,000 125,000 100,000 75.000 300,000 330.000 $10,000 460,000 380,000 1,350.000 1.350,000 Using the Step-Down Method for this problem. Facilities has a total cost pool of $2,400,000. The cost driver has been determined to square footage. What would be the new allocation rate be for facilities? (Hint: round to the second decimal place) Select one or more: a. $7.50 per square foot b. $4.515 per square foot c. $75,000,000 dollars d. $3.358 per square foot 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 director patient service areas. Revenues Space (square Feet Number of Procedures Department Facilities (support dept) Accounting - Billing (support dept) Total for Support Deparments Expenses $ 2,400,000 $ 5,000,000 $ 7,400.000 10,000 20,000 30,000 Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Departments Grant Total $ 30,000,000 $ $ 25,000,000 $ $ 20,000,000 $ $ 75,000,000 $ $ 75,000,000 10,000,000 9,000,000 7,000,000 26,000,000 33,400,000 125.000 100,000 75,000 300,000 330.000 510,000 460,000 380,000 1.350.000 1.350.000 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) Select one or more: a. $3,000,0000 c. $5,150,000 d. $2,112,600