Using the Step-Down Method for this problem. What would be the total expense for the Routine Care department (this is the addition of direct department expenses and allocated indirect costs). (Hint: round to the second decimal place) Choice A: $695,750 Choice B: $1,483,000 Choice C: $11,486,250 Choice D: $12,880,600

CHOICE D. AIC HUUVC 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. Revenues Expenses S Department Facilities (support dept) Accounting - Billing (support dept) Total for Support Departments Space (square Fee Number of Procedures 10.000 20.000 30,000 2.400.000 5.000.000 7,400,000 $ s Routine Care (patient services) Intensive Care (patient services) Diagnostic Services (patient services) Total for Patient Service Departments Grant Total $ 30.000.000 $ s 25.000.000 $ $ 20.000.000 $ $ 75,000,000 $ $ 75,000,000 S 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 of $2.400.000. The