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Really need help with this one! Will leave an upvote! Thank you! Exercise 4-15A (Algo) Allocating costs of service centers to operating departments-step method LO
Really need help with this one! Will leave an upvote! Thank you!
Exercise 4-15A (Algo) Allocating costs of service centers to operating departments-step method LO 4-6 Rundle Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $494,200. The annual cost of operating the computer services department is $380,700. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Number of Number of Patients Workstations 14 Sewell clinic Alphretta clinic Gwinnett clinic Legal services Computer services 6,700 5,500 6,200 8 19 6 21 Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic. Required A Required B Required C Allocate the cost of computer services to all of the clinics and the legal services department. Department Allocated Cost Sewell clinic Alphretta clinic Gwinnett clinic Legal services Total allocated cost Required A Required B Required C After allocating the cost of computer services, allocate the cost of legal services to the three clinics. (Do not round intermediate calculations.) Department Allocated Cost Sewell clinic Alphretta clinic Gwinnett clinic Total allocated cost Required A Required B Required C Compute the total allocated cost of service centers for each clinic. (Do not round intermediate calculations.) Department Allocated Cost Sewell clinic Alphretta clinic Gwinnett clinic Total allocated costStep by Step Solution
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