Question 8 The Rye Village Clinic provides primary health care to local residents. For costing purposes, the clinic classifies its departments into three operating departments (Clinic, Radiology, and Laboratory) and three support departments (Administration, Housekeeping, and Medical Records). The allocation of Administration costs is based on the percentage of time spent in the department. The allocation of Housekeeping costs is based on floor space. The allocation of Medical Records cost is based on the number of entries to patient files. For the first week of May, the department managers report the following data: House- Medical Admin. keeping Records Clinic Radiology Lab. Total Total costs [E] 250 50 200 800 500 400 2,200 Time spent [percentage] 10 10 20 30 20 10 100 Floor space [square feet] 1,000 500 2,500 5,000 3,000 2,000 14,000 Entries to patient files 500 2,000 500 1,500 4,500 Required: (a) Allocate the three support department costs to the three operating departments using the step-down method. The first ranked support department is Administration. The second ranked support department is Housekeeping. The third ranked support department is Medical Records. Round your results to the nearest 10p. [3.5 marks] (b) Comment on the decision to rank the Medical Records support department third in the allocation of costs using the step-down method. [1.5 marks] [Total: 5 marks]