Charter Health Care Center, Inc. has three clinics servicing the Dallas-Fort Worth metropolitan area. Supporting the clinics is the company's legal services department and its computer services department. The annual cost to operate the legal services department is $240,000. The annual cost to operate the computer services department is $320,000. The company uses the number of patients served as the cost driver to allocate the cost of legal services and the number of computer workstations as the cost driver to allocate the cost of the computer services. Other relevant information follows:

Number of Patients Number of Workstations

Fort Worth Clinic 3,000 15

Arlington Clinic 2,100 16

Dallas Clinic 2,900 12

Legal Services Dept. 7

Computer Services Dept. 10

1. a) Use the direct method to allocate the costs of both service departments to the clinics.
2. b) Compute the total allocated overhead costs for each clinic.