Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver… 1 answer below »

Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for General Administration and Financial Services is patient services revenue, while the cost driver for Facilities is space utilization.

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a. What are the appropriate allocation rates?

b. Use an allocation table similar to Table 6.6 to allocate the hospital’s overhead costs to the patient services departments.