Question
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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