Question
A hospital has a P100,000 expected utility bill this year. The Janitorial, Accounting, and Orderlies Departments are service functions to the Operating, Hospital Rooms, and
A hospital has a P100,000 expected utility bill this year. The Janitorial, Accounting, and Orderlies Departments are service functions to the Operating, Hospital Rooms, and Laboratories Departments. Floor space assigned to each department is:
Department........................................................................................ Square Footage
Janitorial................................................................................................ 1,000
Accounting............................................................................................ 2,000
Orderlies............................................................................................... 7,000
Operating.............................................................................................. 4,000
Hospital Rooms.................................................................................. 30,000
Laboratories........................................................................................ 6,000
................................................................................................... 50,000
Determine the total cost allocated to Operating, Hospital Rooms and Laboratories Departments assuming use of the Direct method
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