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. Consider the following cost table for a hospital Overhead costs...

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Accounting

. Consider the following cost table for a hospital

Overhead costs

Cost Allocation basis

Housekeeping $100,000 square ft

Final cost centers Patients treated Square ft

Outpatient $1 million 1,000 5,000

Inpatient $10 million 5,000 20,000

a. Calculate average cost per patient treated in each cost center, ignoring overhead costs

b. Calculate average cost per patient treated in each cost center, including overhead costs

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