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#6-11 Woodbury Hospital has three service departments and three operating departments. Estimated and operating data for all dcpartments in the hospital for thehnguare presened im
#6-11 Woodbury Hospital has three service departments and three operating departments. Estimated and operating data for all dcpartments in the hospital for thehnguare presened im the table below: Service Departments Housekeeping Food Admin. Services Services Laboratory Radiology Hospital Total $193,860 $158,840 243,600 $304,80074,500 975,600 107,200 0,10 62,300 215,700 401,3001,063,680 $301,060 $249.020 $405,900 520.500 $475,800 $2,039,280 $87,000 Meals served Percentage of peak-period 800 2,000 ,000 68,000 71,800 0.8% 6,500 24% 10,000 14,000 952% 7,500 108,000 7,000 25,000 100% 150,000 46,000 1.6% 5,000 13,000 Files processed 30% 50% 100% The costs of the service departments are allocated by the step-down method using the allocation bases and in the order shown in the following table Costs Service Department Allocation Bases Square feet of space Meals served Peak-period needs-Food Services Files processed Peak-period needs-Admin. Services Food Services Administrative Services Variable Fixed All billing in the hospital is done through Laboratory, Radiology or General Hospital. The hospi- tal's administrator wants the costs of the three service departments alliocated to these three billing Prepare the cost allocation desired by the hospital administrator. (Use the step-down method.) In- clude under each billing center the direct costs of the center, as well as the costs allocated from the service departments
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