Problem:
The housekeeping services department of ABC Hospital had $250,000 in direct costs during 2006. these costs must be allocated to ABC's three revenue-producing patient services departments using the direct method. Two cost drivers are under consideration: patient services revenue and hours of housekeeping services utilized. The patient services departments generated $8 million in total revenues during 2006, and to support these clinical activites, used 7,000 hours of housekeeping services.
Required:
Question: What is the value of the cost pool?
Note: Please provide full description.