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 Revenues Expenses Space $($square Feet$)$ Number of Procedures Facilities $($support dept$)$ $ $1,500,00010,000$ Accounting $-$ Billing $($support dept$)$ $ $2,000,00020,000$ Total for Support Departments $ $3,500,00030,000$ Routine Care $($patient services$)$ $ $30,000,000$ $ $10,000,000150,000500,000$ Intensive Care $($patient services$)$ $ $25,000,000$ $ $8,000,000100,000450,000$ Diagnostic Services $($patient services$)$ $ $20,000,000$ $ $6,000,00075,000375,000$ Total for Patient Service Departments $ $75,000,000$ $ $24,000,000325,0001,325,000$ Grant Total $ $75,000,000$ $ $27,500,000355,0001,325,000$

#$10.$ After the allocation of Facilities to the Accounting$/$Billing department $$ what would be the new cost pool for the Accounting $/$ Billing Department? Choice A: $$2,087,000$ Choice B: $$3,000,0000$ Choice C: $$5,000,000$ Choice D: $$100,000,000,000($Hint $$ this is not the correct answer$)$