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question 6.2 a-d

Se de during 2020, and to sa D SE housekeeping G 6.1. The housekeeping services department of Ruger Clinic, a multispecialty practice, had $100,000 in direct costs in 2020. patient services departments using the direct method. Two CM These costs must be allocated to Ruger's three revenue pro drivers are under consideration: patient services revenue and of housekeeping services used. The patient services departam generated $5 million in total revenues these clinical activities, they used 5,000 hours of services. a. What is the value of the cost pool? b. What is the allocation rate if: patient services revenue is used as the cost driver: hours of housekeeping services is used as the cost driver 6.2. Refer to problem 6.1. Assume that the three patient services departments are adult services, pediatric services, and other sic The patient services revenue and hours of housekeeping service each department are as follows: F Chapter 6: Departmental Costing and Cost Allocation indirect costs? Department Adult services Pediatric services Other services Revenue $3,000,000 1,500,000 500,000 $5,000,000 Housekeeping Hours 1,500 3,000 500 5,000 tion? Total ment be a. What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver? b. What is the dollar allocation to each patient services department if hours of housekeeping support is used as the cost driver? What is the difference in the allocation to each department between the two drivers? d. Which of the two drivers is better? Why? cm, must have Treen

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