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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 Admin | Payroll dollars |
Maintenance | Total Assets |
Housekeeping | Patient 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:
- 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.
- produce a table (Table 2) showing the allocation of supporting departments to producing departments using the sequential method. (See example 7.4 for guidance)
- 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 Method | Step Method | Difference | |
Producing Dept. A | $ X | $ Y | $Y - $X |
Producing Dept. B | $ A | $ B | $B - $A |
... | ... | ... | ... |
Producing Dept. L | $ L | $ M | $ M - $ L |
Totals | Sum | Sum | Sum |
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
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