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Assignment help 5555

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

Need the dollar allocation to each patient services department if patient services revenue is used as the cost drive. 

Need the dollar allocation to each patient services department if hours of housekeeping support is used as the cost driver.

Need the difference in the allocation to each department between the two drivers.

Patient revenue as cost drive- each patient services department

Which of the two drivers is better?  Why?


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