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1. For problem 6.6, what is the allocation rate for the Financial Services cost

ID: 2540007 • Letter: 1

Question

1. For problem 6.6, what is the allocation rate for the Financial Services cost pool allocated based on patient services revenue? 2. For problem 6.6, what is the allocation rate for the Financial Services cost pool allocated based on salary dollars? 3. For problem 6.6, how much of the $2,000,000 financial services cost pool is allocated to Intensive Care? 4. For problem 6.6, how much of the $1,000,000 financial services cost pool is allocated to Diagnostic Services? 5. For problem 6.6, what is the total of indirect costs allocated to Routine Care? 6. For problem 6.6, what is the total of indirect costs allocated to Other Services? 7. For problem 6.7, what is the allocation rate for General Administration? 8. For problem 6. 7, what is the allocation rate for Employee Benefits? 9. For problem 6.7, what is the total of indirect costs allocated to Intensive Care? 10. For problem 6.7, what is the total of indirect costs allocated to Obstetrics Services? 11.For problem 6.8, what is the allocation rate for Maintenance? 12.For problem 6.8, what is the allocation rate for Employee Benefits? 13.For problem 6.8, what is the total of indirect costs allocated to Routine Care? 14. For problem 6.8, what is the total of indirect costs allocated to Other Services? 15.I have uploaded my spreadsheet showing my work on this homework 30 889 vo PS

Explanation / Answer

Financial service costs/Patients service revenue =$2,000,000/$50,000,000 = 0.004

Financial service costs/ salary dollars = $1,000,000/$30,000,000 = 0.033

Financial service cost pool * Allocation of intensive care to total patient revenue

$2,000,000*$4,000,000/$50,000,000 = 160,000

Financial service cost pool * Allocation of diagnostic services to salary

$1,000,000*6,000,000/30,000,000 = 200,000

As per chegg policy when there are morethan 4 subquestions only first four will be answered.