This data pertain to problems 6 3 a through 6 3 bSt Benedict’s Hospital has three support departments and

Question

$36,500,000

6.3. Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration and financial services is patient services revenue, while the cost driver for facilities is space utilization.

6.3.a. (1). Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration is patient services revenue. What is the appropriate allocation rate for general administration?

6.3.a. (2). Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for financial services is patient services revenue. What is the appropriate allocation rate for financial services?

6.3.a. (3). Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for facilities is space utilization. What is the appropriate allocation rate for facilities?

6.3.b. Use an allocation table to allocate the hospital’s overhead costs to patient services departments

Finance