Question

8 INPUT DATA 10 Revenues 11 12 13 Adult Medicine 14 Obstetrics 15 Pediatrics Total revenues $ 12.000.000 6,000,000 2.000 ODO $ 20,000,000 18 Direct Costs 20 Patient Series Departments 21 Adult Medicine 22 Obstetrics 3.600.000 23 Pediatrics 1.200.000 24 Subtotal $ 10.800.000 25 Support Departe 26 Administration 1 000 000 27 Facilities 4.400000 28 Finance 180dddd 29 Subtotal MS71200.000 30 Total costs $ 18.000.000 Ready

Answer 1

Answer with working is given below

PART 1 DIRECT METHOD Administration allocation Facilities Allocation Finance Allocation Total Adult Patient Obstetrics Pediatrics Medicines Services Total $437,500 $250,000 $312,500 $1,000,000 $2,847,059 $517,647 $1,035,294 $4,400,000 $1,000,000 $500,000 $300,000 $1,800,000 $4,284,559 $1,267,647 $1,647,794 $7,200,000 PART 2 STEP-DOWN METHOD Administration Facilities Finance Adult Medicines Patient Obstetrics Pediatrics Services Total $100,000 $100,000 $473,684 Administration allocation Facilities Allocation Finance Allocation Total $350,000 $200,000 $250,000 $800,000 $2,605,263 $473,684 $947,368 $4,026,316 $1,318,713 $659,357 $395,614 $2,373,684 $4,273,977 $1,333,041 $1,592,982 $7,200,000