You are helping the Finance director of a special project. He is attempting to determine the best method to allocate the Housekeeping department. He...

You are helping the Finance director of a special project. He is attempting to determine the best method to allocate the Housekeeping department. He has narrowed his choices to two key statistics: 1 - Square Feet or 2 - Hours Spent in Each Clinical Area. Below is the pertinent data you will need to perform the allocation.Housekeeping Department Total Costs:

$250,000

Total Square Feet:

125,000

Total Hours Spent:

12,000

What is the allocation Rate for:

Using Square Feet:

Using Hours:

Allocate to the following Departments based on the provided statistics:

Sq Ft

Hours

                 Medical Unit           20,000 square feet                      2, 000 hours

              Cath Lab                         15,000 square feet                2,000 hours

      Surgery Department                50,000 square feet                4,000 hours

         Radiology                                35,000 square feet                  3,000 hours

           Lab                                           5,000 square feet                    1,000 hours

Based on your analysis, are there differences? Which method would you choose and why?