Final - Q17.xlsx - Given the information provided below compute the direct cost allocations and the profitabiity of each patient care area a Allocate

Final - Q17.xlsx - Given the information provided below...

This preview shows page 1 - 4 out of 4 pages.

Given the information provided below, compute the direct cost allocations and theprofitabiity of each patient care area.a) Allocate Administration costs on the basis of cases.b) Allocate Billing and Coding on the basis of revenues.c) Allocate Facilities on the basis of square footage. Provided Data: Fi Revenues: Nursing Care $ 25,500,000 Surgery 35,400,000 Laboratory 12,100,000 Total Revenues $ 73,000,000 Direct Costs: Patient Services Departments: Nursing Care $ 12,750,000 Surgery 24,000,000 Laboratory 6,000,000 Subtotal $ 42,750,000 Support Departments: Administration $ 3,000,000 Billing and Coding 5,840,000 Facilities 14,530,000 Subtotal $ 23,370,000 Total Costs $ 66,120,000 Profit $ 6,880,000 Profit Margin 9.4% Cases Square Footage Key Statistics/Data:
Nursing Care 16,700 682,000 Surgery 5,250 421,000 Laboratory 10,200 62,000 Administration 10,000 Billing and Coding 35,000 Facilities 15,000 Total 32,150 1,225,000
inal Answer: Nursing Care Surgery Laboratory Total Profit and Loss Statements: Revenues $ 25,500,000 $ 35,400,000 $ 12,100,000 $ 73,000,000

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture