The housekeeping services department of r clinic a

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The housekeeping services department of R clinic, a multispecialty practice in CC had 165105 in direct costs during last year. These costs must be allocated to R Clinic three revenue producing patient services deparments using the direct method. Two cost drivers are under consideration: patient services revenue and hours of housekeeping services used. The patient services departments generated 7 million in total revenues during the year and to support these clinical activities they used 4663 hours of housekeeping services. What is the allocation rate if patient services revenue is used as the cost driver?

Reference no: EM13616066

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