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The attached raw data concerning service departments and billing departments for Halifax Hospital is provided below. The hospital allocates cafeteria costs based on meals consumed,
The attached raw data concerning service departments and billing departments for Halifax Hospital is provided below. The hospital allocates cafeteria costs based on meals consumed, administrative costs based on patient files maintained, and laundry costs based upon loads washed. REQUIRED: (1) Allocate the service department costs for the hospital using the direct method Round all allocation rates to five decimal places and all dollar amounts to the nearest whole dollar Allocate the service department costs for the hospital using the step method Be sure to allocate the departments in the appropriate onder based upon services provided to other service departments. Round all allocation rates to five decimal places and all dollar amounts to the nearest whole dollar Allocate the service department costs for the hospital using the reciprocal method. Round all allocation rates to five decimal places and all dollar amounts to the nearest whole dollar. (3) HALIFAX HOSPITAL DATA RELATING TO SERVICE DEPARTMENTS AND BILLING DEPARTMENTS FOR ALLOCATION OF SERVICE DEPARTMENT COSTS Service Departments Billing Departments Cafeteria Administration Laundry Outpatient OB General Variable Department Costs 80.000 5.2005 5.000 s 15.000 10.000s 25,000 Fixed Department Costs s 60,000 17.000 22.000 s 41.766S 95.000 $ 340,000 Meals Consumed 1.750 800 450 0 8.000 30,000 Patient Files Kept 300 1.280 4.000 1.500 12.500 Laundry Loads Washed 40 10 50 1.500 500 8.000
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