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Help Save & Exit Submi Downtown Medical Clinic (DMC) has two service departments - Building Services and Energy DMC also has three operating departments -
Help Save & Exit Submi Downtown Medical Clinic (DMC) has two service departments - Building Services and Energy DMC also has three operating departments - Pediatrics, Geriatrics and Surgery. DMC allocates the Building Services department costs on the basis of square metres and the Energy department costs on the basis of kilowatt hours. Pediatrics applies overhead based on the number of children seen Geriatrics applies overhead based on the number of seniors seen. Surgery applies overhead based on the number of operations performed. The following table contains budgeted operating data for the upcoming year. Service Departments Operating Departments Building Services Energy Pediatrics Geriatrics Surgery Overhead before allocation $2,000,000 $1,000,000 $450,000 $300,000 $500,000 Square metres 2.000 8.000 12.000 36.000 24,000 Kilowatt hours 7,500 10.000 16.500 23100 26,400 Children 5,000 Seniors 4,000 Operations 8.000 Required: Allocate service department costs to the operating departments using the step method. Allocate the Building Services department costs first Calculate the predetermined overhead rate for each operating department (8 marks) Enter negative numbers using a minus sign. Operating Departments Service Departments Building Services Energy $2,000,000 $1,000,000 Pediatrics $450.000 Overhead before allocation Geriatrics $300.000 Surgery $500,000 8,000 Required: Allocate service department costs to the operating departments using the step method. Allocate the Building Services department costs first. Calculate the predetermined overhead rate for each operating department (8 marks) Enter negative numbers using a minus sign. DO:50:42 Operating Departments Service Departments Building Services Energy $2,000,000 $1.000.000 Book Overhead before allocation Pediatrics $450,000 Geriatrics $300,000 Surgery $500.000 Total after allocation Predetermined overhead rate On the last day of the month, the operating departments at DMC saw 60 children, 30 seniors, and performed 75 operations. How much overhead would have been applied on the last day to each operating department? (3 marks) Pediatrics Geriatrics Surgery Overhead applied
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