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Problem 1: Use the information for St. Vincent's Hospital. Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration is patient services revenue, the cost driver for maintenance is space utilization, and the cost driver for employee benefits is the number of full-time equivalent employees. What is the total of indirect costs allocated to Obstetrics Services? Hint: You have already calculated two of the three allocation rates. Once you finish the remaining rate - then you can allocate the cost pools to the Patient Service departments. Create the table to allocate all the costs to all the areas.
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