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Toledo Clinic has two patient services departments: Adult Services and Pediatric Services The patient services departments are supported by General Administration, Facilities, and Financial
Toledo Clinic has two patient services departments: Adult Services and Pediatric Services The patient services departments are supported by General Administration, Facilities, and Financial Services. The General Administration Department of Toledo Clinic has compiled the following information: Department Direct Costs Square Feet Salary Dollars General $700,000 4,000 $1,200,000 Administration Facilities $300,000 1,000 $800,000 Financial Services $1,000,000 5.000 $2,000,000 Adult Services. $3,600,000 42.000 $12,000,000 Pediatric Services $4,400,000 48,000 $8,000,000 Toledo Clinic has determined that the cost driver for General Administration and Financial Services is salary dollars and that the cost driver for Facilities is square feed. Using the direct method of cost allocation, what is the allocation of General Administration costs to Adult Services? O $420,000 O $280,000 $700,000 O Can't tell from the information provided
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