Management Accounting. 1. Cost Allocation, Textbook health finance 6th edition L Gapenski & K Reiter (2016)

Carefully review the following data and create a P&L for each service department showing their respective overheads. Use the direct allocation method to estimate the overhead for each department.

service department	Square meters	revenues	Direct Costs
viewing	325.481	15.824.000 $	10.562.487 $
Operation	28.650	23.581.497 $	14.521.649 $
Total	354.131	39.405.497 $	25.084.136 $

Facility Services $8,750,000

General

Management $3,532,789

Total Overhead Costs $12.282.789

Total Cost $37,366,925

Projected Total Profit $2,038,572