Memorial Hospital consists of several revenue and nonrevenue centers. In determining the cost of each revenue center, accountants use the step method to allocate the direct cost of nonrevenue centers. The following information is available for a month:

Distribute nonrevenue cost centers in this order for these bases: Personnel’s cost is allocated on the number of employees; Housekeeping, on square footage; and Laundry, on pounds of laundry.
Required:
Use the step method to allocate the costs of the nonrevenue cost centers to the revenue cost centers. Then arrive at application rates based on the following: Radiology—29,961 estimated patients served; Pharmacy—112,012 prescriptions filled; Physical Therapy—58,536 estimated patients served; and Surgical unit—22,422 patient days. Round to whole dollars in arriving at producing department’s application rates.

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Laundry *** Nonrevenue cost centers: Personnel Housekeeping Direct Costs Employees 808 Number of Square Footage Pounds of Order of Laundry Allocation $ 12,000 6 800 0 50,875 40 900 1,210 370,000 18 200 140 123 Revenue cost centers: Radiology $1,400,000 Pharmacy 1,000,000 Physical Therapy 800,000 Surgical unit 200,000 2224 20 1,000 1,350 10 400 50 17 1,250 1,000 45 2,400 3,450