B Downtown Medical Clinic (DMC) has two service departments - Building Services and Energy CMC also has three operating departments - Pediatrics, Geriatrics and Surgery. CMC allocates the Building Services department costs on the basis of square metres and the Energy department costs on the basis of kilowatt hours. Pediatrics applies overhead based on the number of children seen. Geriatrics applies overhead based on the number of seniors seen. Surgery applies overhead based on the number of operations performed. The following table contains budgeted operating data for the upcoming year: Service Departments Operating Departments Pediatrics Geriatrics Surgery Building Services Energy $1,000,000 2,0001 7,5001 $500,000 8,000 10,000 $3,000,000 36,000 23,100 $4,500,000 12,000 16,500 6,000 $5,000,000 24,000 26,400 Overhead before allocation Square metres Kilowatt hours Children Seniors Operations 3,000 4,000 1. Allocate service department costs to the operating departments using the step method. Allocate the Building Services department costs first. Calculate the predetermined overhead rate for each operating department. (8 marks) You may not need to use all the highlighted cells Operating Departments A B Use this table to calculate the allocation percentages Service Departments Building Services Energy Total Pediatrics Geriatrics Surgery Jse this table to allocate the costs and calculate the predetermined overhead rates Service Departments Operating Departments Building Services Energy Pediatrics Geriatrics Surgery $1,000,000 $500,000 udgeted overhead before allocation $3,000,000 $4,500,000 $5,000,000 Total $14,000,000 udgeted overhead after allocation edetermined overhead rates On the last day, the operating departments at DMC saw 60 children, 30 seniors, and performed 75 operations. How much overhead would 2. On the last day, the operating departments at DMC saw 60 children, 30 seniors, and performed 75 operations. How much overhead would have been applied on the last day to each operating department if the step method had been used? (3 marks) 36 37 38 Pediatrics Geriatrics Surgery 39 40 42