Rocky Mountain General Hospital General Medicine Division Surgical Division Medical Support Division Administrative Division Nursing...
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Rocky Mountain General Hospital General Medicine Division Surgical Division Medical Support Division Administrative Division Nursing Department Radiology and Laboratory Department Nutrition Department Housekeeping Department Maintenance Department Kitchen Registered Dietitians' Section Patient Food Service Cafeteria Patient Food Service The following table shows the cost allocation bases used to distribute various costs among the hospital's divisions. Cost Pool Cost Allocation Base Annual Cost Facilities: Building depreciation Square feet of space $192,000 Equipment depreciation Insurance Utilities: Electricity Cubic feet of space 26,000 Waste disposal Water and sewer Cable TV and phone Heat General administration: Administrator Budgeted number of employees 222,000 Administrative staff Office supplies Community outreach: Public education Budgeted dollars of patient billings 42,000 School physical exams Shown below are the amounts of each cost allocation base associated with each division. General Medicine Division Surgical Division Medical Support Division Administrative Division Total Square Feet 15,120 8,400 10,080 8,409 42,000 Cubic Feet 151,200 100,800 88,200 79,800 420,000 Number of Employees 35 15 15 35 100 Patient Billings $2,430,000 1,215,000 405,000 $4,050,000 Required: 1. Prepare a table that distributes each of the costs listed in the preceding table to the hospital's divisions. 2. Review the appropriateness of patient billings as the basis for distributing community Outreach costs to the hospital's divisions, what would be the best allocation base? 3. What are the benefits of allocating utility costs to the divisions? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a table that distributes each of the costs listed in the preceding table to the hospital's divisions. (Round "Percentage of Total" answers to 2 decimal places. (i.e., 0.1234 should be entered as 12.34)) Cost Pool Division Costs Allocation Base Percentage of Total Distributed Facilities General Medicine sq.ft Surgical Medical Support Administrative Total 0 sq.ft 0.0096 $ 0 Utilities cu.ft. 96 General Medicine Surgical Medical Support Administrative Total O cu. ft. 0.00% s General administration empl. 96 General Medicine Surgical Medical Support Administrative Total O empl. 0.00% s Community Outreach billings 96 General Medicine Surgical Medical Support Administrative Total O billings 0.00% S
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