HS440 Finance for Healthcare Unit 7 Assignment David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses
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Description
Unit 7
Assignment
Use the following information for problems 1, 2, and 3.
David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer problems 22, 23 and 24.
Square Footage
Direct
Expenses
Lab Tests
Utilities
200,000
Administration
2,000
500,000
Laboratory
2,000
625,000
Day-op Suite
3,000
1,400,000
4,000
Cystoscopy
1,500
300,000
500
Endoscopy
1,500
600,000
500
Total
10,000
3,625,000
5,000
Step 1: Compile Basic Stats
Step 2:...
