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David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the

David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests.
Square Footage Direct Expenses Lab Tests
Utilities $200,000
Administration 2,000 $500,000
Laboratory 2,000 $625,000
Day-op Suite 3,000 $1,400,0004,000
Cystoscopy 1,500 $300,000500
Endoscopy 1,500 $600,000500
Total 10,000 $3,375,0005,000
What are the Day Op Suite's total expenses?

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