Check my work Problem 4B-5 (Algo) Step-Down Method (L04-11) Woodbury Hospital has three service departments and three operating departments. Estimated cost and operating data for all departments in the hospital for the forthcoming quarter are presented in the table below. Service Departments Housekeeping Operating Departments Food Administrative General Services Services Services Total cost Laboratory Radiology Hospital Total $ 97,000 5 321,062 $ 269,020 Meals served $430,900 $ 560,500 $ 510,880 $ 2,189,288 1,800 Square feet of space 4,00 2,000 74,000 81,888 6,000 16,000 8,500 13,000 8,500 110,000 Files processed 170,000 119,000 12.000 35,000 66,000 The costs of the service departments are allocated by the step down method using the allocation bases and in the ordet shown in the following table: Service Department Allocation Bases Housekeeping Services Square feet of space Food Services Meals served Administrative Services Files processed All billing in the hospital is done through Laboratory, Radiology. or General Hospital. The hospital's administrator wants the costs of the three service departments allocated to these three billing centers. Required: Using the step down method, prepare the cost allocation desired by the hospital administrator include under each billing center the direct costs of the center, as well as the costs allocated from the service departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round Intermediate calculations Round your answers to the nearest whole dollar amount.) Housekeeping Food Administrative General Laboratory Radiology Services Services Services Hospital $ Departmental costs before allocations 97,000 $ 321.0605 209.020 $ 430.9005 610.800 500.500 5 Allocations Meals served 1,800 4,000 2,000 74,000 81,800 Square feet of space 6,000 16,000 8,500 13,000 8,500 118,000 170,000 Files processed 19,000 12,000 35,000 66,000 The costs of the service departments are allocated by the step-down method using the allocation bases and in the order shown in the following table: Service Department Allocation Bases Housekeeping Services Square feet of space Food Services Meals served Administrative Services Files processed All billing in the hospital is done through Laboratory, Radiology, or General Hospital. The hospital's administrator wants the costs of the three service departments allocated to these three billing centers. Required: Using the step-down method, prepare the cost allocation desired by the hospital administrator. Include under each billing center the direct costs of the center, as well as the costs allocated from the service departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round Intermediate calculations. Round your answers to the nearest whole dollar amount.) Housekeeping Food Administrative General Laboratory Services Services Services Radiology Hospital $ 97,000 $ 321.060 $ 269,020 $ 430,900 $ 560,500 $ 510,800 Departmental costs before allocations Allocations: Housekeeping Services costs Food Services costs Administrative Services costs Total costs after allocations 510,800 430,900 $ 560,500 $ $ 97,000 $ 321,060 $ 269,020 $
