1. Business
  2. Operations Management
  3. please i need help with this question if for my...

Question: please i need help with this question if for my...

Question details
Please, I need help with this question if for my final grade project can you provide de answer and the formula for each one of this question, please thank you.
Ruger Clinic Cost Allocation Problem (Course Objective # 2, 3, 4, and 5) The Housekeeping Services Department of Ruger Clinic, a multispeciality practice in Toledo, Ohio, had $100,000 in direct costs during the year. These costs must be allocated to Rugers three revenue-producing patient services departments using the direct method. Two cost drivers are under consideration: patient services revenue and hours of housekeeping total of $5 million total hours of housekeeping services. services used. The patient services departments generated a in revenues during the year. To support these clinical activities, the departments used 5,000 a. What is the value of the cost pool? (Hint: The value of the cost pool is the total amount of direct costs attributable to the overhead service.) b. What is the allocation rate if patient services revenue is used as the cost driver? Show your computations. c. What is the allocation rate if hours of housekeping services are used as the cost driver? Show your computations. Assume that the three patient services departments are Adult Services, Pediatric Services, and Other Services. The patient services revenue and hours of housekeeping services for each department are as follos: Department Adult Services Pediatric Services Other Services Total Housekeeping Hours 1,500 3,000 500 5,000 Revenue $ 3,000,000 1,500,000 500,000 $ 5,000,000
What is the dollar allocation to each patient services department if patient services revenue is used d. as the cost driver? Complete the Table below. Allocation Allocation (S Department Adult Services Pediatric Services Other Services Total Revenue Rate Amount) $ 3,000,000 1,500,000 500,000 $ 5,000,000 What is the dollar allocation to each patient services department if hours of housekeeping support e. are used as the cost driver? Complete the Table below. Allocation Allocation (S Amount) Department Adult Services Pediatric Services Other Services Total Revenue Rate $ 3,000,000 1,500,000 500,000 $ 5,000,000 What is the dollar difference in the amount allocated to each department between the two cost drivers when changing from revenues as the cost driver to hours of housekeeping support as the f. driver? Complete the Table below Allocation ($ Amount) using patient services revenue Amount) using hours of housekeepi ng support Difference ($ Amount) Department Adult Services Pediatric Services Other Services Which of the two drivers patient services revenue vs. hours of housekeeping services is better? g. Explain your answer
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution