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Apopka Community Hospital has two patient service departments (Medicine and Surgery) and three support departments (Facilities, Administration, and Financial Services). The hospital uses the step-down method for cost allocation, and it has determined that the cost driver for facilities is space (square feet) and the cost driver for administration and financial services is the number of employees. Facilities comes first in the allocation sequence followed by administration and then financial services. Use the step-down method of cost allocation to calculate the full costs of operating the departments of Medicine and Surgery The direct costs to each of the service and support departments are as follows: Direct Costs Facilities $1,200,000 Administration $4,600,000 Financial Services $2,400,000 Medicine $8,000,000 Surgery $12,000,000 Total $28,200,000 Allocation Bases Facilities Administration Financial Services (Square Feet) (Number of (Number of Employees) Employees) Facilities 2,000 100 100 Administration 1,000 500 500 Financial Services 1,000 400 Medicine 36,000 2,400 Surgery 12,000 1,200 1,200 400 2,400 Use the step-down method of cost allocation to calculate the full costs of operating the patient services departments (Medicine, Surgery). Hint: Watch the following video