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Patient services revenue-hours of housekeeping services

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Assume that the three patient services departments in are Adult Services, Pediatric Services, and Other Services. The patient services revenue and hours of housekeeping services for each department are:

Department Revenue Housekeeping Hours

Adult Services $3,000,000 1,500

Pediatric Services 1,500,000 3,000

Other Services 500,000 500

Total $5,000,000 5,000

(a) I need the dollar allocation to each patient services department if patient services revenue is used as the cost drive.

(b) I need the dollar allocation to each patient services department if hours of housekeeping support is used as the cost driver.

(c) I need the difference in the allocation to each department between the two drivers.

(d) of the two drivers, which is better? Why?

Reference no: EM132200186

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