Question
Montana Multispecialty Group Incorporated has three support departments, General Administration, Facilities, and Financial Services, and three patient services departments, Adult Services, Pediatric Services, and Other
Montana Multispecialty Group Incorporated has three support departments, General Administration, Facilities, and Financial Services, and three patient services departments, Adult Services, Pediatric Services, and Other Services. General Administration provides the most services to other departments followed by Facilities and then Financial Services. The results of a step-down cost allocation for Montana Multispecialty Group are presented below: GENERAL ADMINISTRATION COSTS ALLOCATED TO: Facilities: $4,000 Financial Services: $4,000 Adult Services: $8,000 Pediatric Services: $10,000 Other Services: $4,000 FACILITIES COSTS ALLOCATED TO: Financial Services: $2,000 Adult Services: $9,000 Pediatric Services: $16,000 Other Services: $5,000 FINANCIAL SERVICES COSTS ALLOCATED TO: Adult Services: $14,000 Pediatric Services: $18,000 Other Services: $6,000 Given the information above, what were total direct costs (the original cost pool) for the Financial Services?
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