C D Downtown Medical Clinic (OMC) has two service departments - Building Services and Energy CMC also has three operating departments - Pediatrics. Geriatrics and Surgery CMC allocates the Building Services department costs on the basis of square metres and the Enerty 1 department costs on the basis of kllowatt hours. Pediatrics applies overhead based on the number of children seen. Geriatries applies overhead based on the number of seniors seen. Surgery applles overhead based on the number of operations performed 2 The following table contains budgeted operating data for the upcoming year 3 4 Service Departments Operating Departments 5 Building Services Energy Pediatries Geriatries Surgery 5.000 6 Overhead before allocation $1.000.000 $500,000 $4,500,000 $3,000,000 $5.000.000 7 Square metres 2.000 8.000 12.000 36.000 24,000 8 Kilowatt hours 7.500 10,000 16,500 23,100 26,400 9 Children 10 Seniors 3.000 11 Operations 4,000 12 13 1. Allocate service department costs to the operating departments using the step method. Allocate the Building Services department costs 14 first. Calculate the predetermined overhead rate for each operating department. (8 marks) You may not need to use all the highlighted cells. Operating Departments 15 Use this table to calculate the allocation percentares 16 Service Departments Building 17 Services Energy 18 KMC SM 2 New Pediatrics Geriatrics Surgery Total 2 CUCCHERE TO SAVE YOUR WORK D 15 Use this table to calculate the location percentares 10 Service Departments 17 Building Services Energy Operating Departments Pediatrics Geriatris Surgery Total 19 21 22 23 Use this table to allocate the costs and calculate the predetermined overhead rates Service Departments Operating Departments Building 25 Services Energy Pediatries Geriatrics Surgery $1.000.000 26 Budgeted overhead before allocation $500,000 $4,500,000 $3,000,000 $5,000,000 27 Total $14.000.000 29 Budgeted overhead after allocation 30 31 32 33 Predetermined overhead rates 34 2. On the last day, the operating departments at DMC saw 60 children, 30 seniors, and performed 75 operations. How much overhead would 35 have been applied on the last day to each operating department if the step method had been used? (3 marks) 36 37 Pediatries Geriatrics Surgery Whaptea in One Merge CLICK HERE TO LAVE YOUR WORK A 29 Budgeted overhead after allocation 10 33 Predetermined overhead rates 34 2. On the last day, the operating departments at DMC saw 60 children, 30 seniors, and performed 75 operations. How much overhead would 35 have been applied on the last day to each operating department of the step method had been used? (3 marks) 36 37 Pediatrics Geriatrics Sureery 38 39 40 41 42
