at a direct cost of $100,000. (An Excel worksheet does not accompany this proble
ID: 2595790 • Letter: A
Question
at a direct cost of $100,000. (An Excel worksheet does not accompany this problem.) The square footage of each ward and hours of housekeeping are provided below: Ward Square Feet Housekeeping Hours Housekeeping Services at Omega Hospital provided janitorial services to three wards during 2 20,000 30,000 150 200 ICU L&D; Med/Surg 150,000 Total 200,000 1000 Hint: Remember, costs are allocated proportionately! You do not need a spreadsheet to solve this problem. What is the dollar allocation to each ward if square feet are used as the basis of allocation? A $10,000 B. $15,000 20,000 0 S25,000 E s50,000 F $65,000 $75,000 L&D; Med/SurgExplanation / Answer
Cost per square feet
= Budgeted cost / Total square feet
= $100,000 / 200,000
= $0.50 per square feet
Allocation to each department
= Square feet area of the department x Cost per square feet
ICU
= 20,000 x $0.50
= $10,000
L & D
= 30,000 x $0.50
= $15,000
Med / Surg
= 150,000 x $0.50
= $75,000
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