5) The fixed costs of operating the maintenance facility of General Hospital are...
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5) The fixed costs of operating the maintenance facility of General Hospital are $4,500,000 annually. Variable costs are incurred at the rate of $30 per maintenance-hour. The facility averages 40,000 maintenance-hours a year. Budgeted and actual hours per user for the year are as follows: Building and grounds Operating and emergency Patient care Administration Total Budgeted hours 10,000 8,000 21,000 1,000 40.000 Actual hours 12,000 8,000 22,000 1,200 43,200 Assume that budgeted maintenance-hours are used to calculate the allocation rates. a. If a single-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department? b. If a single-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage? c. If a dual-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department? d. If a dual-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on budgeted usage for fixed operating costs and actual usage for variable operating costs
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