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

Basic hospital has twelve producing departments and four supporting departments. The budgeted data hereDownload 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.

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:

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.

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