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Need help 2 profit centers: Oncology and Orthopedics 2 service departments: HR and IT # of hrs: Service Dept. Profit Dept. HR IT Oncology 2900
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2 profit centers: Oncology and Orthopedics
2 service departments: HR and IT
# of hrs:
Service Dept.
Profit Dept. HR IT
Oncology 2900 3620
Orthopedics 2770 3810
Service Dept.
Accg. 2650 2850
IT 2820 2750
Ttl. 11,140 13,030
Ttl op cost: HR 42 mil & IT 50 mil
? Allocate service dept costs to profit centers using, step down using HR 1st, then using IT 1st, finally direct method ?
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