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The Housekeeping Department of Micanopy Hospital has direct costs of $600,000. The hospital's four patient service departments utilize the following amounts of space: Department A
The Housekeeping Department of Micanopy Hospital has direct costs of $600,000. The hospital's four patient service departments utilize the following amounts of space: Department A = 3,000 square feet, Department B = 2,000 square feet, Department C = 1,000 square feet, and Department D = 2,000 square feet. Assuming that the cost driver for housekeeping costs is the amount of occupied space, what is the allocation of housekeeping costs to Department A?
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