Refer to Problem 6.1. Assume that the three patient services departments are adu
ID: 2700028 • Letter: R
Question
Refer to Problem 6.1. Assume that the three patient services departments are adult services, pediatric services, and other services. The patients services revenue and house of housekeeping services for departments are:
Department Revenue Housekeeping Hours
Adult Services 3,000,000 1500
Pediatric Services 1,500,000 3000
Other Services 500,000 500
Total 5,000,000 5000
What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver?
What is the dollar allocation to each patient services department if hours of housekeeping support are used as the cost driver?
What is the difference in the allocation to each department between the two drivers?
Which of the two drivers is better? Why?
Explanation / Answer
I am sorry but it seems as if you have not provided the cost details in the question. Please co-operate. Please rate this answer & re-post with complete details.
The cost driver informationis summarized below:
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Adult pediatric other totlal Revenue 3000000 1500000 500000 5000000 Housekeeping hrs 1500 3000 500 5000