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Question 1 15 out of 0 points View Rubric Co. has two service departments: Security services and IT, and three operating departments: Drugs Rehabilitation, Preventative
Question 1 15 out of 0 points View Rubric Co. has two service departments: Security services and IT, and three operating departments: Drugs Rehabilitation, Preventative Medicine, and Geriatrics. ABC Co. allocates the cost of Building Operations on the basis of square footage and Utilities on the basis of patient days. Fixed and variable costs are not separated. Budgeted operating data for the previous year are presented below: Drugs IT Preventative Security services Rehabilitation Medicine Geriatrics Budgeted costs before allocation $20,000 $10,000 $90,000 $60,000 $100,000 Square Footage 1,000 4,000 6,000 18,000 12,000 Patient Days 5,500 7,700 8,800 Required: Prepare a schedule to allocate service department costs to operating departments by the direct method (round all dollar amounts to the nearest whole dollar)
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