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. Use the information in the chart below.

What are the cystoscopy department's total expenses?

What are the endoscopy department's total expenses?

{| Square Footage* Direct Lab Tests Utilities Administration 2,000 500.000 Laboratory 2.000 Day- on suite* 3.0.00 1, 400, 000 Cystoscopy 1. 5010 300,00 0 500 Endoscopy 1. 500 Total $3. 375, 00 0