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You are helping the Finance director of a special project. He is attempting to determine the best method to allocate the Housekeeping department. He has narrowed his choices to two key statistics: 1 – Square Feet or 2 – Hours Spent in Each Clinical Area. Below is the pertinent data you will need to perform the allocation.Housekeeping Department Total Costs:
Total Square Feet:
Total Hours Spent:
What is the allocation Rate for:
Using Square Feet:
Allocate to the following Departments based on the provided statistics:
Medical Unit 20,000 square feet 2, 000 hours
Cath Lab 15,000 square feet 2,000 hours
Surgery Department 50,000 square feet 4,000 hours
Radiology 35,000 square feet 3,000 hours
Lab 5,000 square feet 1,000 hours
Based on your analysis, are there differences? Which method would you choose and why?
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