Question

Carol West, the nurse manager of the cystoscopy suite, was given approval to add more space to her current area by converting 500 square feet of administrative space into another cystoscopy bay. What will her new fully allocated expenses be? (Assume that there are no new additional costs incurred by adding the 500 square feet.)

 

 

 

Square Footage

 

 

Direct Expenses

 

 

Lab Tests

 

 

Utilities

 

 

 

 

$ 400,000

 

 

 

 

Administration

 

 

4,000

 

 

$700,000

 

 

 

 

Laboratory

 

 

2,000

 

 

$750,000

 

 

 

 

Day-op Suite

 

 

4,000

 

 

$2,500,000

 

 

6,000

 

 

Cystoscopy

 

 

2,000

 

 

$575,000

 

2000

 

 

Endoscopy

 

 

1,000

 

 

$300,000

 

 

1,500

 

 

Total

 

 

13,000

 

 

$ 5,225,000

 

 

9,500