Final - Q18 - Given the information provided below compute the step-down cost allocations and the profitabiity of each patient care area a Allocate

Final - Q18 - Given the information provided below...

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Given the information provided below, compute the step-down cost allocations and profitabiity of each patient care area.a) Allocate Facilities costs on the basis of square footage.b) Allocate Administration on the basis of direct costs.c) Allocate Billing and Coding on the basis of revenues. 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
the inal Answer: Nursing Care Surgery Laboratory Profit and Loss Statements: Revenues $ 25,500,000 $ 35,400,000 $ 12,100,000 Direct Cost $ 12,750,000 $ 24,000,000 $ 6,000,000 Contribution Margin $ 12,750,000 $ 11,400,000 $ 6,100,000 Support Costs Facilities $ 8,189,636 $ 5,055,479 $ 744,512 Administration 869,531 1,636,765 409,191 Billing and Coding 2,325,938

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