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The patient services revenue and hours of housekeeping services for each department are:
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) need dollar allocation to each patient serv department if patient ser rev is cost drive?
(b) Need dollar allocation to each patient serv department if hours of housekeeping support is cost driver?
(c) Need difference in allocation to each department between two drivers?
(d) Which of the two drivers is better? Why?
Please provide work.
