Cost Allocation in Healthcare at Johnson & Johnson

Requirements:

1. Allocate overhead costs to different departments (e.g., R&D, Production, Sales) at Johnson & Johnson using an appropriate cost allocation method.

Department	Direct Costs ($)	Overhead Costs ($)
R&D	14,000,000	5,600,000
Production	20,000,000	8,000,000
Sales	10,000,000	4,000,000

2. Calculate the total cost for each department.
3. Evaluate the impact of overhead cost allocation on department budgets.
4. Recommend strategies to optimize cost allocation and improve financial performance.