Help Please

Anonymous
timer Asked: Nov 29th, 2016

Question description

1.  Facilities provides the most services to the other support departments, followed closely by human resources.  The financial services department provides the least services to the other support departments.  The allocation is in the following order: facilitiesàhuman resourcesàfinancial services.  The revenue-generating services are the routine and urgent care.  Use the step down method to answer what is the total amount of indirect costs allocated to routine care in 2013?

$_______ 

Use the following information for activity in 2013:

Cost Drivers:

Financial Services

patient services revenue

Facilities

square feet

Human Resources

number of employees

Direct Costs of Support Departments:

Financial Services

4,000

Facilities

5,000

Human Resources

3,000

Direct Costs of Revenue-Producing Departments:

Routine Care

10,000

Urgent Care

8,000

Patient

Space

Services

(Square

Number of

Department

Revenue

Feet)

Employees

Support:

Financial Services

30

5

Facilities

40

10

Human Resources

50

15

Total

120

30

Patient Services:

Routine Care

30,000

100

20

Urgent Care

20,000

70

25

Grand Total

50,000

290

75


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