(Direct method) Management of Dekalb Community Hospital has decided to allocate the budgeted costs of its three service departments (administration, public relations, and maintenance) to its three revenue-producing programs (surgery, in-patient care, and out-patient services). Budgeted information for 2006 follows: LO.1

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Budgeted costs Administration Public relations Maintenance Allocation bases: Administration Public relations Maintenance $2,000,000 700,000 500,000 Dollars of assets employed Number of employees Hours of equipment operation Dollars of Assets Employed Administration Public relations Maintenance Surgery In-Patient care Out-Patient services $ 740,090 450,100 825,680 1,974,250 1,229,250 521,500 EXPECTED UTILIZATIONS Number of Employees 10 18 22 475062 Hours of Equipment Operation 1,020 470 1,530 12,425 8,875 14,200 Using the direct method, allocate the expected service department costs to the revenue-producing areas.