Question

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

250

Elder Care

40,000,000

50,000

400

Total

$190,000,000

550,000

1,150

Grand Total

$190,000,000

563,000

1,278

Now assume that St. Elsewhere uses the step-down method of cost allocation. Assume that General Administration provides the most services to the other support departments, followed by maintenance and housekeeping, and then human resources

A) The allocation rate for General Administration is $

B) The allocation rate for Maintenance & Housekeeping is $

C) The allocation rate for Human Resources is $

(4) Allocate the support costs to the patient service departments.

(A) Amount Allocated from General Administration to Primary Care is $

(B) Amount Allocated from General Administration to Intensive Care is $

(C) Amount Allocated from General Administration to Elder Care is $

(D) Amount Allocated from Maintenance & Housekeeping to Primary Care is $

(E) Amount Allocated from Maintenance & Housekeeping to Intensive Care is $

(F) Amount Allocated from Maintenance & Housekeeping to Elder Care is $

(G) Amount Allocated from Human Resources to Primary Care is $

(H) Amount Allocated from Human Resources to Intensive Care is $

(I) Amount Allocated from Human Resources to Elder Care is $

Please answer in dollar amounts

please answer A through I only

Homework Answers

Answer #2

answered by: anonymous
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