Cost Allocation Use the step-down distribution method to allocate Network Security and Data Warehouse costs. Use direct distribution to allocate the remaining costs, which will include Scheduling, Billing and Admin.

Allocation Statistics Network Data Total Costs Security Warehouse Scheduling Billing Admin Support Centers Network Security Data Warehouse Scheduling Billing Admin 500,000 2,500,000 1,000,000 1,200,000 5,500,000 20.0% 10.0% 20.0% 250% 25.0% Operating Centers Medical Office Outpatient Inpatient Rehabilitation 5,000,000 7,500,000 12,500,000 ,000,000 100% 1 0% 20.0% 0% 20.0% 10.0% 15.0% 5.0% 20. 0% 40,0% 30.0% 100% 20.0% 25.0% 400% 15.0% 20.0% 30.0% 40,0% 10.0% Total Costs 39,700,000 100.0% 100.0% 100.0% 100.0% 100.0%