Find dollar allocation to each patient service department

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Reference no: EM13477059

Assume that the three patient services departments are adult services revenue and hours of housekeeping services for each department are:

Department

Revenue

Housekeeping

Adult services

$3,000,000

1,500

Pediatric services

1,500,000

3,000

Other services

500,000

500

 

 

 

Total

$5,000,000

5,000

a. What is the dollar allocation to each patient service department if patient services revenue is used as the cost driver?

b. What is the dollar allocation to each patient services if hours of house keeping support are used as the cost driver?

c. What is the difference in the allocation to each department between the two drivers?

d. Which of the two divers is better? Why?

Reference no: EM13477059

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