Refer to Problem 6.1. Assume that the three patient services departments are a

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 3000000 1500

Pediatric Services 1500000 3000

Other Services 500000 500

Total 5000000 5000

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?