Refer to Problem 6.1. Assume that the three patient services departments are adult services, pediatric services, and other services. The
patients services revenue and house of housekeeping services for departments are:
Department Revenue Housekeeping Hours
Adult Services 3,000, XXXXXXXXXX
Pediatric Services 1,500, XXXXXXXXXX
Other Services 500,000 500
Total 5,000, XXXXXXXXXX
What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver?
What is the dollar allocation to each patient services department if hours of housekeeping support are used as the cost driver?
What is the difference in the allocation to each department between the two drivers?
Which of the two drivers is better? Why?