Question
Problem 1. David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining
Problem 1. David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on the square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer the question.
| Square Footage | Direct Expenses | Lab Tests |
Utilities |
| 200,000 |
|
Administration | 2,000 | 500,000 |
|
Laboratory | 2,000 | 625,000 |
|
Day-op Suite | 3,000 | 1,400,000 | 4,000 |
Cystoscopy | 1,500 | 350,000 | 500 |
Endoscopy | 1,500 | 300,000 | 500 |
Total | 10,000 | 3,375,000 | 5,000 |
Based on the scenario above, what are the Endoscopy Department's total expenses? please show work so I can figure the other 19 questions
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