Harbortown Multispecialty Clinic has two revenue-generating patient services departments - Medicine and Surgery. These departments are supported by three overhead departments - Housekeeping, Financial Services, and General Administration. The following information on Clinic expenses was compiled: Department Direct Costs Square Feet # of Employees Housekeeping General Admin. Fin. Services Medicine Surgery $200,000 3,000 $400,000 5,000 $300,000 2,000 $1,000,000 53,000 $1,500,000 40,000 en 250 500 100 2,600 2,300 Harbortown has determined that the cost driver for housekeeping is square feet and that the cost driver for Administration and Financial Services is the number of employees. Using the direct method of cost allocation, what is the approximate allocation rate for housekeeping costs (round to the nearest cent)?

Harbortown Multispecialty Clinic has two revenue-generating patient services departments - Medicine and Surgery. These departments are supported by three overhead departments - Housekeeping, Financial Services, and General Administration. The following information on Clinic expenses was compiled: Department Direct Costs Square Feet # of Employees Housekeeping General Admin. Fin. Services Medicine Surgery $200,000 3,000 $400,000 5,000 $300,000 2,000 $1,000,000 53,000 $1,500,000 40,000 en 250 500 100 2,600 2,300 Harbortown has determined that the cost driver for housekeeping is square feet and that the cost driver for Administration and Financial Services is the number of employees. Using the direct method of cost allocation, what is the approximate allocation rate for housekeeping costs (round to the nearest cent)?

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Question

Harbortown has determined that the cost driver for housekeeping is square feet and
that the cost driver for Administration and Financial Services is the number of
employees. Using the direct method of cost allocation, what is the approximate
allocation rate for housekeeping costs (round to the nearest cent)?
O $2.15 per square foot
$2.28 per square foot
$2.21 per square foot
$1.94 per square foot

Harbortown Multispecialty Clinic has two revenue-generating patient services
departments - Medicine and Surgery. These departments are supported by three
overhead departments - Housekeeping, Financial Services, and General
Administration. The following information on Clinic expenses was compiled:
Department Direct Costs Square Feet # of Employees
Housekeeping
General Admin.
Fin. Services
Medicine
Surgery
$200,000
3,000
$400,000
5,000
$300,000
2,000
$1,000,000
53,000
$1,500,000 40,000
en
250
500
100
2,600
2,300
Harbortown has determined that the cost driver for housekeeping is square feet and
that the cost driver for Administration and Financial Services is the number of
employees. Using the direct method of cost allocation, what is the approximate
allocation rate for housekeeping costs (round to the nearest cent)?

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