2 Brook Health Care Center Incorporated has three clinics servicing the Birmingham metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The company uses the number of computer workstations as the cost driver for allocating the cost of computer services and the number of patients as the cost driver for allocating the cost of legal services. The annual cost of the Department of Legal Services was $340,000, and the annual cost of the Department of Computer Services was $250,000. Other relevant 3 information follows. 4 340,000 250,000 5 6 Hoover Clinic 7 Eastwood Clinic 8 Gardendale Clinic 9 Legal Services 10 11 Required Number of Patients Number of Workstations 3,100 17 2,300 13 2,800 6 0 14 12 Complete the spreadsheet to allocate the service costs using the step method. 13 14 Spreadsheet Tip The supporting calculation section must be completed simultaneously with the allocation table. However, most of the 15 supporting calculations can be completed first. The exception is that the value in cell C25 refers to the sum of cells C18 and 16 17 Gardendale Computer Services Legal Services Hoover Clinic Eastwood Clinic Clinic 18 Costs to be allocated 19 Step 1 Allocation 20 Step 2 Allocation 21 Total in cost pool after allocation 22 23 Supporting calculations: 24 25 a) Cost to be allocated 26 27 28 Hoover Clinic 29 Eastwood Clinic 30 31 Gardendale Clinic Legal Services 32 b) Total of driver 33 34 Allocation rate a/b 35 Workstations Patients Driver x Rate Driver x Rate