Question
Allocate cost of service centers to operating departments step method Jenkins Health Care Center has three clinics servicing the Seattle metropolitan area. The company's legal
Allocate cost of service centers to operating departments step method Jenkins Health Care Center has three clinics servicing the Seattle 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 annual cost of operating the legal services department is $256,000. The annual cost of operating the computer services department is $480,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services.Other relevant information follows: number of patient(NP) number of workstation(NW) cobb clinic 6,000(NP) 18(NW) victoria clinic 4,200(NP) 16(NW) pied clinic 5,800(NP) 18(NW) legal servic 8(NW) computer serv 10(NW) Required: a) Allocate the cost of computer services to all of the clinics and the legal services department. b) after allocating the cost of computer services, allocate the cost of legal services to the three clinics. c) Compute the total allocated cost of service center for each clinic.
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