Allocation Methods - 14 points. Management of Schreveport community Hospital has decided to allocate its three support departments (administration, public relations, and maintenance) to its three operating departments (surgery, in-patient, and out-patient). Budgeted information for the year follows: DIRECT COSTS ADMINISTRATION PUBLIC RELATIONS MAINTENACE AND JANITORIAL SURGERY IN-PATIENT OUTPATIENT SERVICES ALLOCATION BASES ADMINISTRATION < PUBLIC RELATIONS $5,400,000 1,100,000+ 1,700,000 9,000,000 12,000,000 8,000,000+ Dollars of assets employed Number of employees MAINTNANCE AND JANITORIAL Hours of equipment operation Expected Utilizations Assets Employed Number of Hours of Equipment Employees Operation Administration $1,500,000 20 2,000 Public Relations 900,000 10 1,000 Maintenance and Janitorial 1,600,000 75 3,000 Surgery 4,000,000 20 25,000 In-patient care 2,500,000 40 30,000 Out-patient 1,000,000 50 14,000 Question 17. What are the costs allocated from Public Relations to In-Patient using the direct Method? 18. What amount of public relations gets directly allocated to surgery using the Step-Down Method? 19. What total amount of public relations gets allocated to surgery using Step- Down Method (directly and indirectly) 20. What is the total dollar amount of all departments (before allocation) using the direct Method? 21. What is the total dollar amount of the operating (revenue-producing) departments after allocation, using the Step-Down Method? 22. What total amount of administration gets allocated to in-patient care using the Step-Down Method (directly and indirectly)? 23. How much total costs are allocated to the Out-patient Services, using the Direct Mehod? 24. What amount of total non-revenue producing costa are allocated to Surgery, using the Step-down Method? I 2 L I Answer T. T. T. T. T.