Using the same numbers as we will calculate using the Step-Down Method. In this example, it...

  

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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 fpatient services) Total for Patient Service Departments Grant Total Revenues Expenses $ S $ S 30,000,000 $ S 25,000,000 $ S 20,000,000 $ $75,000,000 $ $75,000,000 S 1,800,000 2,000,000 3.800.000 10,000,000 9,000,000 7,000,000 26.000.000 29.500.000 Space (square Feet) Number of Procedures 10,000 20,000 30.000 125,000 100,000 75,000 300,000 330,000 500,000 450,000 400,000 1.350.000 1.350.000 #8. Using the Step-Down Method for this problem. Facilities has a total cost pool of $1,800,000. 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) #9. 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) 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 fpatient services) Total for Patient Service Departments Grant Total Revenues Expenses $ S $ S 30,000,000 $ S 25,000,000 $ S 20,000,000 $ $75,000,000 $ $75,000,000 S 1,800,000 2,000,000 3.800.000 10,000,000 9,000,000 7,000,000 26.000.000 29.500.000 Space (square Feet) Number of Procedures 10,000 20,000 30.000 125,000 100,000 75,000 300,000 330,000 500,000 450,000 400,000 1.350.000 1.350.000 #8. Using the Step-Down Method for this problem. Facilities has a total cost pool of $1,800,000. 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) 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 fpatient services) Total for Patient Service Departments Grant Total Revenues Expenses $ S $ S 30,000,000 $ S 25,000,000 $ S 20,000,000 $ $75,000,000 $ $75,000,000 S 1,800,000 2,000,000 3.800.000 10,000,000 9,000,000 7,000,000 26.000.000 29.500.000 Space (square Feet) Number of Procedures 10,000 20,000 30.000 125,000 100,000 75,000 300,000 330,000 500,000 450,000 400,000 1.350.000 1.350.000 #8. Using the Step-Down Method for this problem. Facilities has a total cost pool of $1,800,000. 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) 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 fpatient services) Total for Patient Service Departments Grant Total Revenues Expenses $ S $ S 30,000,000 $ S 25,000,000 $ S 20,000,000 $ $75,000,000 $ $75,000,000 S 1,800,000 2,000,000 3.800.000 10,000,000 9,000,000 7,000,000 26.000.000 29.500.000 Space (square Feet) Number of Procedures 10,000 20,000 30.000 125,000 100,000 75,000 300,000 330,000 500,000 450,000 400,000 1.350.000 1.350.000 #8. Using the Step-Down Method for this problem. Facilities has a total cost pool of $1,800,000. 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) #9. 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) #9. 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) #9. 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)

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8 To calculate the new allocation rate for Facilities we need to divide the total ... View the full answer