Assume that three patient service departments are Adult Services, Pediatric Services, and Other Services. The patient services revenue and hours of housekeeping services for each department are as follows:

Department                           Revenue                     Housekeeping Hours

Adult Services                        $3,000,000                            1,500

Pediatric Services                  1,5000,000                            3,000

Other Services                       500,000                                500

     Total                                  $5,000,000                            5,000

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?

Which of the two drivers is better? Why?