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Exercise 4-15A Allocating costs of service centers to operating departments- step method Kirby Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area.

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Exercise 4-15A Allocating costs of service centers to operating departments- step method Kirby Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The compa- ny's legal services department supports the clinics. Moreover, its computer services department sup- ports all of the clinics and the legal services department. The annual cost of operating the legal services department is $200,000. The annual cost of operating the computer services department is $360,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows: Number of Patients Number of Workstations Sewell clinic Alphretta clinic Gwinnett clinic Legal services Computer services 6,000 4,200 5,800 18 16 18 8 10 Required Cost Accumulation. To 2. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic

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