• Clinic has 2 service departments, A and B, and two revenue departments Y and Z. The clinic uses the indirect method of allocating service departments costs and begins the allocation with department A. The following information is given: Direct cost pool: Department A: $100,000 Department B: 150,000 Department Y: 750,000 Department Z: 500,000 Total $1,500,000 Department A services provided to: Department A: 5% Department B: 10% Department Y: 65% Department Z: 20% Total 100% Department B services provided to: Department A: 10% Department B: -0-% Department Y: 60% Department Z: 30% Total 100%

• How many steps will be necessary to complete the allocation?
• After Step 1, the total cost of department B rounded to the nearest whole dollar is $__________
• After Step 1, the total cost of department A rounded to the nearest whole dollar is $__________

• After all steps have been completed, the total cost of department Y rounded to the nearest whole dollar is $ __________