Final - Q17 (1) - Given the information provided below compute the direct cost allocations and the profitabiity of each patient care area a

Final - Q17 (1) - Given the information provided below...

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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

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