Question

St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to...

St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are:

General Administration $176014
Facilities 530638
Financial Services 300750

Selected data for the three support and four patient services departments are:

Department Patient Services Revenue Space (Square Feet) Housekeeping Labor Hours Salary Dollars
Support
General Administration 1161 197 144592
Facilities 21568 5227 2735043
Financial Services 1583 259 192662
Patient Services
Routine Care $2592517 40000 16563 1210982
Intensive Care 424167 4102 3195 473802
Diagnostic Services 551998 6420 1441 532090
Other Services 975954 10904 2103 742988

Assume that the hospital uses the step-down method for cost allocation, with salary dollars as the cost driver for general administration, housekeeping labor hours as the cost driver for facilities, and patient services revenue as the cost driver for financial services. Assume also that the general administration department provides the most services to other support departments, followed closely by the facilities department. The financial services department provides the least services to the other support departments.

Given these data, what percentage of the facilities department costs will be allocated to the intensive care department?

(Do not round intermediate calculations. Enter your final answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)

Homework Answers

Answer #1
Department general admin facilities financial services routine care intensive care diagnostic services other services
Cost ($) 176,014 530,638 300,750
Allocation basis salary dollars housekeeping labor hours
Cost allocation (176,014) 81766 5761 36203 14165 15907 22212
Total - 612404 306511
Cost allocation (612,404) 6732 430510 83045 37455 54662

Cost allocation to be dono further in the similar manner

% of cost of facilities dept allocated to intensive care dept will be =

= 83,045 / 612,404 = 13.56%

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
St. Elsewhere Hospital has three support departments and three patient services departments. The direct costs to...
St. Elsewhere Hospital has three support departments and three patient services departments. The direct costs to each of the support departments are as follows: General Administration $20,000,000 Maintenance and Housekeeping 15,000,000 Human Resources 5,000,000 Use the following data in this question: Department Patient Service Revenue Space (in square footage) Number of Employees Support: General Administration 5,000 20 Maintenance and Housekeeping 6,000 100 Human Resources 2,000 8 Total 13,000 128 Patient Services: Primary Care $80,000,000 400,000 500 Intensive Care 70,000,000 100,000...
Wellspring Clinic has two patient services departments: Medicine and Surgery. The patient services departments are supported...
Wellspring Clinic has two patient services departments: Medicine and Surgery. The patient services departments are supported by the Housekeeping, Financial Services, and Administration departments. The Administration Department of Wellspring Clinic has compiled the following information: Department Direct Costs Square Feet No. of Employees Housekeeping $ 200,000 3,000 250 Administration $ 400,000 5,000 500 Financial Services $ 300,000 2,000 100 Medicine $1,000,000 53,000 2,600 Surgery $1,500,000 40,000 2,300 Wellspring has determined that the cost driver for the Housekeeping Department is square...
Lexington hospital has the following departments: administration, housekeeping, marketing, medical/surgical unit, intensive care unit. List each...
Lexington hospital has the following departments: administration, housekeeping, marketing, medical/surgical unit, intensive care unit. List each of three cost allocation methods, and use diagrams to describe each. Waht cost driver would you use to allocate costs for each of the non-revenue producing departments? Why did you choose each cost driver?
Many hospitals use square footage to allocate housekeeping costs. The rationale, of course, is that in...
Many hospitals use square footage to allocate housekeeping costs. The rationale, of course, is that in patient services one department that is twice as big as another will require twice the expenditure of housekeeping resources. The advantage of this cost driver is that it is easy to measure and typically remains constant for a relatively long period (department space allotments do not change very often). The disadvantage of using square footage as the cost driver is that some patient services...
You have been asked to develop a database system for the Elijah Community Hospital. ECH is...
You have been asked to develop a database system for the Elijah Community Hospital. ECH is a small, local community hospital with approximately 125 beds. The basic goal is to provide high-quality, cost-effective health-care services for the surrounding community in North Georgia. The various business functions that the hospital currently has are: Patient care administration software-record keeping aspects of patient care Clinic and lab services software-provides lab testing and procedures and patient monitoring & screening Patient care software-provide patients with...
Each of the clinic’s three departments (administration, general peds and neonatology) has a cost code in...
Each of the clinic’s three departments (administration, general peds and neonatology) has a cost code in the practice’s accounting software and all the practice’s expenses are assigned to one of these three areas. The practice manager is interested in better understanding the profitability of each division, but realizes that to do so she must allocate administrative cost to the two divisions. The practice administrator gathers the following information about the two clinical departments for the past month Monthly revenue Claims...
Alpha Hospital (‘Alpha’), a 500-bed private hospital in Country X, provides medical services to the elderly....
Alpha Hospital (‘Alpha’), a 500-bed private hospital in Country X, provides medical services to the elderly. In addition to meeting the special needs of the elders who are physically weak, Alpha offers the centre-based and home-based community care services. In recent years, Alpha faces keen competition from other public and private hospitals, local elderly centres and nursing homes. Alpha needs to get a reasonable estimate of the cost of elderly care services for proper control purposes. Christine, financial controller of...
Profit Center Responsibility Reporting A-One Freight Inc. has three regional divisions organized as profit centers. The...
Profit Center Responsibility Reporting A-One Freight Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance using operating income as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31, 20Y3. Revenues—Air Division $ 919,700 Revenues—Rail Division 1,078,900 Revenues—Truck Division 1,935,200 Operating Expenses—Air Division 582,800 Operating Expenses—Rail Division 642,100 Operating Expenses—Truck Division 1,170,300 Corporate Expenses—Shareholder Relations 139,900 Corporate Expenses—Customer Support 515,000 Corporate...
I only need/want question #4 answered. Only Question 4! Thanks! Twin Falls Community Hospital is a...
I only need/want question #4 answered. Only Question 4! Thanks! Twin Falls Community Hospital is a 250-bed, not-for-profit hospital located in the city of Twin Falls, the largest city in Idaho’s Magic Valley region and the seventh largest in the state. The hospital was founded in 1972 and today is acknowledged to be one of the leading healthcare providers in the area. Twin Falls’ management is currently evaluating a proposed ambulatory (outpatient) surgery center. Over 80 percent of all outpatient...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...