Basic hospital has twelve producing departments and four supporting departments. The budgeted data here pertain to these sixteen departments, and the allocation statistics table below identifies the allocation bases used to distribute the costs of each supporting department. '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. Create 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. Create a table (Table 2) showing the allocation of supporting departments to producing departments using the sequential method. (See example 7.4 for guidance) 3. Create 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: 4. If the hospital is currently using the direct method, do you think (based on the differences you see) that they should switch to the sequential method? Write up your recommendation to the management of Basic Hospital in 250 words or less, 5. Combine Table 1, Table 2, Table 3, and your recommendation into a single PDF and upload the PDF to complete the assignment. Be sure to reference the grading rubric and thoroughly review your work prior to submission. Basic hospital has twelve producing departments and four supporting departments. The budgeted data here pertain to these sixteen departments, and the allocation statistics table below identifies the allocation bases used to distribute the costs of each supporting department. '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. Create 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. Create a table (Table 2) showing the allocation of supporting departments to producing departments using the sequential method. (See example 7.4 for guidance) 3. Create 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: 4. If the hospital is currently using the direct method, do you think (based on the differences you see) that they should switch to the sequential method? Write up your recommendation to the management of Basic Hospital in 250 words or less, 5. Combine Table 1, Table 2, Table 3, and your recommendation into a single PDF and upload the PDF to complete the assignment. Be sure to reference the grading rubric and thoroughly review your work prior to submission
