Cost Allocation Exercise Use the Direct Method Approach Projected Revenues by patient services department Amount Routine care $36,000,000 Laboratory $19,000,000 Radiology $17,000,000 Total Revenues $72,000,000 Projected Costs for all departments: Patient Services Departments (Direct Cost) Routine care $19,000,000 Laboratory $10,000,000 Radiology $11,000,000 Total Costs $40,000,000 Support Services Department (Overhead Costs) Financial Services $5,000,000 Facilities $7,200,000 Housekeeping $3,500,000 Administration $5,000,000 Human Resources $3,200,000 Totals Costs $23,900,000 Total Costs of both patient and support services $63,900,000 Projected Profit $8,100,000 Cost Allocation Exercise Use the Direct Method Approach Projected Revenues by patient services department Amount Routine care $36,000,000 Laboratory $19,000,000 Radiology $17,000,000 Total Revenues $72,000,000 Projected Costs for all departments: Patient Services Departments (Direct Cost) Routine care $19,000,000 Laboratory $10,000,000 Radiology $11,000,000 Total Costs $40,000,000 Support Services Department (Overhead Costs) Financial Services $5,000,000 Facilities $7,200,000 Housekeeping $3,500,000 Administration $5,000,000 Human Resources $3,200,000 Totals Costs $23,900,000 Total Costs of both patient and support services $63,900,000 Projected Profit $8,100,000 Question 18 COMPLETE TABLE (All highlighted areas and questions should be filled in using formulas and pertinent data from prior worksheets---Direct 1 and Direct Cost Drivers) 3 points Patient Services Department Support Department Routine Care Laboratory Radiology Totals Allocated Financial Services Facilities Housekeeping Administration Human Resources Total Indirect Costs Direct cost Total cost What is the resulting profitability of each Department and the organization as a whole?? Hint ....Use Revenues by Department from Direct 1 Worksheet tab and Total Departmental Costs from above to derive profit by Department. Verify overall profit mathche that shown at bottom of Direct 1 worksheet tab
Cost Allocation Exercise Use the Direct Method Approach Projected Revenues by patient services department Amount Routine care $36,000,000 Laboratory $19,000,000 Radiology $17,000,000 Total Revenues $72,000,000 Projected Costs for all departments: Patient Services Departments (Direct Cost) Routine care $19,000,000 Laboratory $10,000,000 Radiology $11,000,000 Total Costs $40,000,000 Support Services Department (Overhead Costs) Financial Services $5,000,000 Facilities $7,200,000 Housekeeping $3,500,000 Administration $5,000,000 Human Resources $3,200,000 Totals Costs $23,900,000 Total Costs of both patient and support services $63,900,000 Projected Profit $8,100,000 Cost Allocation Exercise Use the Direct Method Approach Projected Revenues by patient services department Amount Routine care $36,000,000 Laboratory $19,000,000 Radiology $17,000,000 Total Revenues $72,000,000 Projected Costs for all departments: Patient Services Departments (Direct Cost) Routine care $19,000,000 Laboratory $10,000,000 Radiology $11,000,000 Total Costs $40,000,000 Support Services Department (Overhead Costs) Financial Services $5,000,000 Facilities $7,200,000 Housekeeping $3,500,000 Administration $5,000,000 Human Resources $3,200,000 Totals Costs $23,900,000 Total Costs of both patient and support services $63,900,000 Projected Profit $8,100,000 Question 18 COMPLETE TABLE (All highlighted areas and questions should be filled in using formulas and pertinent data from prior worksheets---Direct 1 and Direct Cost Drivers) 3 points Patient Services Department Support Department Routine Care Laboratory Radiology Totals Allocated Financial Services Facilities Housekeeping Administration Human Resources Total Indirect Costs Direct cost Total cost What is the resulting profitability of each Department and the organization as a whole?? Hint ....Use Revenues by Department from Direct 1 Worksheet tab and Total Departmental Costs from above to derive profit by Department. Verify overall profit mathche that shown at bottom of Direct 1 worksheet tab
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Cost Allocation Exercise Use the Direct Method Approach Projected Revenues by patient services department Amount Routine care $36,000,000 Laboratory $19,000,000 Radiology $17,000,000 Total Revenues $72,000,000 Projected Costs for all departments: Patient Services Departments (Direct Cost) Routine care $19,000,000 Laboratory $10,000,000 Radiology $11,000,000 Total Costs $40,000,000 Support Services Department (Overhead Costs) Financial Services $5,000,000 Facilities $7,200,000 Housekeeping $3,500,000 Administration $5,000,000 Human Resources $3,200,000 Totals Costs $23,900,000 Total Costs of both patient and support services $63,900,000 Projected Profit $8,100,000 Cost Allocation Exercise Use the Direct Method Approach Projected Revenues by patient services department Amount Routine care $36,000,000 Laboratory $19,000,000 Radiology $17,000,000 Total Revenues $72,000,000 Projected Costs for all departments: Patient Services Departments (Direct Cost) Routine care $19,000,000 Laboratory $10,000,000 Radiology $11,000,000 Total Costs $40,000,000 Support Services Department (Overhead Costs) Financial Services $5,000,000 Facilities $7,200,000 Housekeeping $3,500,000 Administration $5,000,000 Human Resources $3,200,000 Totals Costs $23,900,000 Total Costs of both patient and support services $63,900,000 Projected Profit $8,100,000 Question 18 COMPLETE TABLE (All highlighted areas and questions should be filled in using formulas and pertinent data from prior worksheets---Direct 1 and Direct Cost Drivers) 3 points Patient Services Department Support Department Routine Care Laboratory Radiology Totals Allocated Financial Services Facilities Housekeeping Administration Human Resources Total Indirect Costs Direct cost Total cost What is the resulting profitability of each Department and the organization as a whole?? Hint ....Use Revenues by Department from Direct 1 Worksheet tab and Total Departmental Costs from above to derive profit by Department. Verify overall profit mathche that shown at bottom of Direct 1 worksheet tab
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