HCM 416 Financial Management in Health Care Organizations Unit 4b: Cost Allocation Homework Assignment 1. For problem 6.

HCM 416 Financial Management in Health Care Organizations

Unit 4b: Cost Allocation

Homework Assignment

1.   For problem 6.6, what is the allocation rate for the Financial Services cost pool allocated based on patient services revenue?

0.04

2.   For problem 6.6, what is the allocation rate for the Financial Services cost pool allocated based on salary dollars?

0.03

3.   For problem 6.6, how much of the $2,000,000 financial services cost pool is allocated to Intensive Care?

160,000

4.   For problem 6.6, how much of the $1,000,000 financial services cost pool is allocated to Diagnostic Services?

200,000

5.   For problem 6.6, what is the total of indirect costs allocated to Routine Care?

5,489,091

6.   For problem 6.6, what is the total of indirect costs allocated to Other Services?

1,481,515

7.   For problem 6.7, what is the allocation rate for General Administration?

0.06349

8.   For problem 6. 7, what is the allocation rate for Employee Benefits?

2758.62

9.   For problem 6.7, what is the total of indirect costs allocated to Intensive Care?

1,284,630

10. For problem 6.7, what is the total of indirect costs allocated to Obstetrics Services?

892,120

11. For problem 6.8, what is the allocation rate for Maintenance?

6.41

12. For problem 6.8, what is the allocation rate for Employee Benefits?

0.09

13. For problem 6.8, what is the total of indirect costs allocated to Routine Care?

7,205,128

14. For problem 6.8, what is the total of indirect costs allocated to Other Services?

3,059,829

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