Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Basic hospital has twelve producing departments and four supporting departments. The budgeted data here Download herepertain to these sixteen departments, and the allocation statistics table

Basic hospital has twelve producing departments and four supporting departments. The budgeted data here Download herepertain to these sixteen departments, and the allocation statistics table below identifies the allocation bases used to distribute the costs of each supporting department.

ALLOCATION STATISTICS TABLE
Dept.Statistic
General AdminPayroll dollars
MaintenanceTotal Assets
HousekeepingPatient Days
Cafeteria# of employees

*Step method support department rankings are based on the proportion of the department's statistic that is used up by other support departments.

Required:

  1. produce a table (Table 1) showing the allocation of supporting departments to producing departments using the direct method. See example 7.3 from the textbook for guidance on preparing the allocation schedule.
  2. produce a table (Table 2) showing the allocation of supporting departments to producing departments using the sequential method. (See example 7.4 for guidance)
  3. produce a table (Table 3) showing the comparison of the two allocation methods. Table 3 should be a summary table. It should have columns for total amounts allocated for each method. It should also have a column for the difference between the two methods. Rows should exist for each producing department. For Example:
Table Title
Direct MethodStep MethodDifference
Producing Dept. A$ X$ Y$Y - $X
Producing Dept. B$ A$ B$B - $A
............
Producing Dept. L$ L$ M$ M - $ L
TotalsSumSumSum

image text in transcribed

General Admin Maintenance Housekeeping Cafeteria Emergency Room Labor and Delive Surgery Intensive Care Radiology General Med/S Opthamology Psychiatry Long-term Care Physical Therap Palliative Care Coronary Care Direct Overhead $ 753,547 $ 548,687 $ 654,853 $ 996,452 $ Payroll dollars $ 542,568 $ 227,927 $ 456,852 $ Total Assets $ 807,052 $ 398,312 $ 393,907 $ 525,458 $ 435,127 $ 512,475 $ 1,024,950 $ 624,239 $ 1,248,478 $ 179,612 $ 125,132 $ 428,129 $ 415,091 $ 450,316 $ 359,224 $ 250,264 $ 856,258 $ 830,182 $ 900,632 $ 703,617 $ Patient Days 7,452 850,583 $ 2,816 181,217 $ 13,082 237,380 $ 3,050 849,170 $ 793,965 $ 724,377 $ 5,662 3,983 1,448 Employees 5 3 8 9 11 13 5 4 10 10 10 358,314 $ 716,628 $ 547,952 $ 1,581 9 546,974 $ 1,093,948 $ 104,291 $ 267,706 $ 184,130 208,582 $ 535,412 $ 368,260 1,041,184 $ 8,715 206,694 $ 492,682 $ 268,154 4,000 716 4,795 12 3 7 5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting an introduction to concepts, methods and uses

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

13th Edition

978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003

More Books

Students also viewed these Accounting questions

Question

What limitations on growth should a small business owner consider?

Answered: 1 week ago

Question

How will you see Hibernate generated SQL statements on console?

Answered: 1 week ago

Question

Calculate the number of neutrons of 239Pu.

Answered: 1 week ago

Question

c. What is the median of the wave-height distribution?

Answered: 1 week ago