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?
