Please review the case study "We Care Medical Center" by Matthew Dyer. If you use the hard copy, it is on page 522; 1. Using Tables 18-6 and 18-7 (Expansion Allocation 1), allocate the indirect expenses to both the Routine Care and Orthopedic Care Departments. Once allocated, Determine the projected net income for both. 2. Interpreting the results from question 1, do you think the cost allocation method of using revenue as a cost driver is a fair allocation method? Please elaborate on your answer and justify: Why? Why not? 3. Using Tables 18-6 and 18-7, allocate the indirect expenses based on the square footage after the expansion. 4. Now interpret the results from question 3. Is this a fair allocation method? Please elaborate on your answer and justify it: Why? Why not? 5. Out of the two cost allocation methods, which do you think is the most accurate for both departments? Please elaborate on your answer and justify it. 6. Understanding multiple cost allocation methods exist, what are important factors to consider when evaluating which methodshouldbeused?

References 1. Dyer, Matthew. We Care Medical Center. Harvard Business School. 2012. 2. Cost Allocation. Accessed April 28, 2021. https://www.investopedia.com/terms/c/costallocation.asp 3. Cost Allocation Method. Accessed April 28, 2021. https://www.investopedia.com/terms/c/costallocationmethod.asp 4. What is Cost Allocation? Accessed April 28, 2021. https://www.accountingtools.com/articles/2017/5/what-is-cost-allocation.html 5. Cost Allocation Guidelines. Accessed April 28, 2021. https://www.thebalancesmb.com/cost-allocation-guidelines-2275250