Using the same numbers as we will calculate using the Step-Down Method.

Using the same numbers as we will calculate using the Step-Down Method. In this example, it has been determined to step-down Facilities expenses to the rest of the support departments and to the direct or patient service areas. #8. Facilities has a total cost pool of $1,500,000. The cost driver has been determined to square footage. What would be the new allocation rate be for facilities? Choice A: $4.35 per square foot Choice B: $5.51 per square foot Choice C: $4.62 per square foot Choice D: $75,000,000 dollars

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