Toledo Clinic has two patient services departments: Adult Services and Pediatric Services The patient services departments...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Toledo Clinic has two patient services departments: Adult Services and Pediatric Services The patient services departments are supported by General Administration, Facilities, and Financial Services. The General Administration Department of Toledo Clinic has compiled the following information: Department General Administration Facilities Financial Services Adult Services Pediatric Services Direct Costs $700,000 $300,000 $1,000,000 $3,600,000 $4,400,000 Square Feet 4,000 1,000 5,000 42,000 48,000 Salary Dollars $1,200,000 $800,000 $2,000,000 $12,000,000 $8,000,000 Toledo Clinic has determined that the cost driver for General Administration and Financial Services is salary dollars and that the cost driver for Facilities is square feed. Using the step-down method of cost allocation, what is the approximate allocation rate for General Administration costs (round to three decimal places)? Assume General Administration's costs are allocated first, followed by Facilities and then by Financial Services'. Toledo Clinic has two patient services departments: Adult Services and Pediatric Services The patient services departments are supported by General Administration, Facilities, and Financial Services. The General Administration Department of Toledo Clinic has compiled the following information: Department General Administration Facilities Financial Services Adult Services Pediatric Services Direct Costs $700,000 $300,000 $1,000,000 $3,600,000 $4,400,000 Square Feet 4,000 1,000 5,000 42,000 48,000 Salary Dollars $1,200,000 $800,000 $2,000,000 $12,000,000 $8,000,000 Toledo Clinic has determined that the cost driver for General Administration and Financial Services is salary dollars and that the cost driver for Facilities is square feed. Using the step-down method of cost allocation, what is the approximate allocation rate for General Administration costs (round to three decimal places)? Assume General Administration's costs are allocated first, followed by Facilities and then by Financial Services'.
Expert Answer:
Answer rating: 100% (QA)
To determine the approximate allocation rate for General Administration costs using the stepdown method we need to allocate the costs in a sequential manner Step 1 Allocate General Administration costs Since General Administration costs are allocated first we allocate the entire General Administration cost ... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The first payroll in October covered the two workweeks that ended on September 26 and October 3. This payroll transaction has been entered for you in the payroll register, the employees' earnings...
-
Consider solidification of a semi- infinite liquid region which is initially at the fusion temperature T. At 120 the surface at x = 0 is suddenly maintained at a temperature T
-
Consider four advertising campaigns where for each one it is cancelled before launch with probability 0.10, it is launched but canceled early with probability 0.18, it is launched and runs its...
-
Steam enters a convergingdiverging nozzle at 1 MPa and 500C with a negligible velocity at a mass flow rate of 2.5 kg/s, and it exits at a pressure of 200 kPa. Assuming the flow through the nozzle to...
-
Determine whether the lines L 1 and L 2 are parallel, skew, or intersecting. If they intersect, find the point of intersection. L 1 : x = 3 + 2t, y = 4 - t, z = 1 + 3t L 2 : x = 1 + 4s, y = 3 - 2s, z...
-
The accountant of your business has recently been taken ill through overwork. In his absence his assistant has prepared some calculations of the profitability of a project, which are to be discussed...
-
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Additional data obtained from the income statement and from an examination of the accounts...
-
Instructions Dob Night opened The General's Favorite Fishing Hole. The thing camp is open from April through September and attracts many tamous colege fiebat coaches during the fatos Cuests hypically...
-
Instructions You are expected to read the article titled: Risk mitigation in IT outsourcing strategy revisited: longitudinal case research at LISA, and answer the case study questions in the next...
-
MANAGERIAL ACCOUNTING-HOMEWORK Question 4: What is the difference between product cost and period cost? Which of the following costs would be considered a period cost and which of them would be...
-
What are some ways in which inefficiency may occur in an organization?
-
How do auditors measure effectiveness and efficiency?
-
What are the three primary objectives of financial internal controls?
-
What is the internal auditors role in compliance auditing with respect to laws, ordinances, and regulations?
-
What primary types of controls help ensure compliance with accounting policies, procedures, and guidelines?
-
Quantitative Problem: Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 7.6% with semiannual payments of $38, and a par value of $1,000. The price of...
-
Outline a general process applicable to most control situations. Using this, explain how you would develop a system to control home delivery staff at a local pizza shop.
-
Adria Lopez is considering the purchase of equipment for Success Systems that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $ 300,000...
-
Lorenzo Company uses a job order cost accounting system that charges overhead to jobs on the basis of direct material cost. At year-end, the Goods in Process Inventory account shows the following. 1....
-
The class should be divided into teams. Teams are to select an industry (such as automobile manufacturing, airlines, defense contractors), and each team member is to select a different company in...
-
The standard costs for a manufacturing business are \($12\) per unit for direct materials, \($8\) per unit for direct labour, and \($5\) per unit for manufacturing overhead. The sales projection is...
-
What is Munchs expected profit for April? a. $192,500 b. $56,000 c. $66,000 d. $59,000 Munch Enterprises makes a small toy car that is voice activated. Projected sales for the next four months are...
-
Bobby Jones Inc. is planning sales of 55,000 units for the next three months. The company has a beginning inventory of 10,000 units and would like to have an ending inventory of 15,000 at the end of...
Study smarter with the SolutionInn App