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Cost Allocation Exercise Use the Direct Method Approach Projected Revenues by patient services department Routine care Laboratory Radiology Total...

Follow the instructions on each excel worksheet. (Direct 1, Direct Cost Drivers, Final Allocations, Sheet 1).

Cost Allocation Exercise Use the Direct Method Approach Projected Revenues by patient services department Amount Routine care $14,000,000 Laboratory $5,000,000 Radiology $3,500,000 Total Revenues $22,500,000 Projected Costs for all departments: Patient Services Departments (Direct Cost) Routine care $3,300,000 Laboratory $3,750,000 Radiology $1,100,000 Total Costs $8,150,000 Support Services Department (Overhead Costs) Financial Services $1,000,000 Facilities $2,600,000 Housekeeping $1,200,000 Administration $3,000,000 Personnel $1,600,000 Totals Costs $9,400,000 Total Costs of both patient and support services $17,550,000 Projected Profit $4,950,000
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Key Information Cost Drivers Unit Measure Financial Services Patient Services Revenue Facilities Square Footage Housekeeping Labor Hours Administration Salary Dollars Personnel Salary Dollars Patient Services Square Ft Housekeeping Salary Dollars Revenue Labor Hours Routine care $14,000,000 165,000 68,000 $4,000,000 Laboratory $5,000,000 30,000 3,800 $750,000 Radiology $3,500,000 65,000 7,400 $1,056,300 Total $22,500,000 260,000 79,200 $5,806,300 COMPLETE THE TABLE (Need to calculate allocation rate) Overhead Allocation Rates Cost Pool Cost Driver Total utilization Allocation Rate Financial Services $1,000,000 Patient Services Revenue $22,500,000 Facilities $2,600,000 Square Footage 260,000 Housekeeping $1,200,000 Labor Hours 79,200 Administration $3,000,000 Salary Dollars $5,806,300 Personnel $1,600,000 Salary Dollars $5,806,300
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Dear student , Please... View the full answer

worksheets wk3(1).xlsx

Cost Allocation Exercise
Use the Direct Method Approach
Projected Revenues by patient services department
Routine care
Laboratory
Radiology
Total Revenues Amount
$14,000,000
$5,000,000
$3,500,000...

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