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The Housekeeping Services Department of Lehman Clinic had $800,000 in the year. These costs must be allocated to the three departments at the Clinic using
The Housekeeping Services Department of Lehman Clinic had $800,000 in the year. These costs must be allocated to the three departments at the Clinic using the direct method. The cost driver being considered is square feet, and the entire facility comprises of 100,000 square feet. direct costs during a) What is the value of the cost pool? (1 point) b) What is the allocation rate? (2 points) If each department occupies the following square feet: Adult Services = 50,000 sq ft Pediatric Services 30,000 sq ft Other Services 20,000 sq ft What is the allocation amount for: a) Adult Services (2 points) b) Pediatric Services (2 points) c) Other Services (2 points)
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