11. Cost allocation. Use the information in Exhibit 12.11 to answer these questions. REVIEW QUESTIONS AND PROBLEMS EXHIBIT 12.11 BASIC STATISTICS FOR COST ALLOCATION IN A SURGERY CLINIC USED IN PROBLEM 12.11 575 A Square feet B Lab tests Utilities Administration Laboratory Day-Op Suite Cystoscopy Endoscopy Total 5,000 3,000 5,000 3,000 Dept. costs $500,000 $800,000 $850,000 $3,500,000 $675,000 $400,000 $6,725,000 CO2,000 18,000 7.000 3,000 2,500 12,500 c. Bobbie Jones, the manager of the endoscopy suite, is concerned about adding more space. She contends that if the cystoscopy and endoscopy units were combined, fewer staff would be needed, and direct costs could be reduced by $50,000 ($25,000 in each unit). She also feels that the day-op area is underutilized, and that 500 square feet could be used by a combined unit when excess capacity was needed. Assuming that the 500 square feet were to be allocated equally between the endoscopy and cystoscopy suites, what would the total allocated costs for each of these two services be under this scenario