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Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Information Technology and Administration,
Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Information Technology and Administration, and two operating departments, Surgery and Recovery Operating Department Service Department Information Technology Administration $25,956 $36, 356 Surgery Recovery $563,640 $588,2ee Departmental costs Computer workstations Employees 28 17 54 30 15 13 95 27 Information Technology Department costs are allocated on the basis of computer workstations and Administration Department costs are allocated on the basis of employees. The total amount of Information Technology Department cost allocated to the two operating departments is closest to: Multiple Choice O $109.015 $18.019 $25.956 O $21.597
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