Refer to Exhibit, which portrays the three types of allocation procedures used in two-stage allocation. Give an example of each of these allocation procedures in a hospital setting. The ultimate cost object is a patient-day of hospital care. This is one day of care for one patient. (First think about the various departments in a hospital. Which departments deal directly with patients: which ones are service departments and do not deal directly with patients? What kinds of costs does a hospital incur that should be distributed among all of the hospital€™s departments? Correct hospital terminology is not important here. Focus on the concepts of cost allocation portrayed inExhibit).

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STAGE ONE Service Departments Factory Custodia Services Department Machinery Repair Department Overhead costs are assigned to Manufacturing-Overhoad Distribution (General Service Department Cost Allocation Service department costs are allocated to the production departments.) production mufacturing-ovarhead departments. osts are distributed to all departments.) Production Departments Machining Department Assembly Department Overhead Application (All costs accumulated in the production departments are applied to products.) STAGE Two Overhead costs are assigned to production jobs. Production jobs pass through production departments. The Machining Dapartment manuladures bicycle components, such as the bicyde frame pictused thithe Assembly Department, the components are put together. The Machining Depemert and the Assem bly Departiment each has is own predetemined ovathasd rate.