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Unformatted text preview: the departments are shown in Table 2 below. Table 2. Cost Driver Volumes Department Square Feet Revenue Facilities Services 100,000 $0 General Administration 75,000 Routine Care 261,000 22,000,000 Critical Care 39,600 5,000,000 Exercises: 1. Allocate the support department costs to the patient service departments using the direct method of cost allocation. 2. Allocate the support department costs to the patient service departments using the step-down method of allocation. Assume that Facilities Services costs are allocated first....
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- Spring '10