St. Benedict's Hospital has three support departments and four patient services departments. The direct costs...
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Accounting
St. Benedict's Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are: General Administration $216,235 Facilities 471,422 Financial Services 345,616 Selected data for the three support and four patient services departments are: Department Patient Services Revenue Space (Square Feet) Housekeeping Labor Hours Salary Dollars Support General Administration 976 158 154,531 Facilities 17,033 5,707 3,471,056 Financial Services
Assume that the hospital uses the step-down method for cost allocation, with salary dollars as the cost driver for general administration, housekeeping labor hours as the cost driver for facilities, and patient services revenue as the cost driver for financial services. Assume also that the general administration department provides the most services to other support departments, followed closely by the facilities department. The financial services department provides the least services to the other support departments.
Given these data, what is the cost pool for facilities?
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