Question
the hospotial wants to allocate the service department costs to the revenue areas. Housekeeping is allocated based on square footage; laundry is allocated based on
the hospotial wants to allocate the service department costs to the revenue areas. Housekeeping is allocated based on square footage; laundry is allocated based on pounds of laundry. the normal capacity for surgery is 200 hours per month; normal capacity for semiprivate rooms is 600 patient days; and normal cpapcity for maternity is 200 patient days. determine the overhead reat for the three revenue areas. Allocate teh service department costs to the revenue areas using the step method. Allocate the service department with the largers dollar value first.
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