Question
Total cost Meals served Square feet of space Files processed Service Departments Operating Departments Housekeeping Services Food Services Administrative General $99,000 $325,060 Services $273,020
Total cost Meals served Square feet of space Files processed Service Departments Operating Departments Housekeeping Services Food Services Administrative General $99,000 $325,060 Services $273,020 Laboratory Radiology Hospital $435,900. $568,500 $517,800 Total $2,219,280 6,200 16,600 2,000 8,900 4,400 2,200 75,200 83,800 13,600 8,700 20,000 13,000 120,000 37,000 174,000 70,000 The costs of the service departments are allocated by the step-down method using the allocation bases and in the order shown in the following table: Service Department Housekeeping Services Food Services Administrative Services Allocation Bases Square feet of space. Meals served Files processed All billing in the hospital is done through Laboratory, Radiology, or General Hospital. The hospital's administrator wants the costs of the three service departments allocated to these three billing centers. Required: Using the step-down method, prepare the cost allocation desired by the hospital administrator. Include under each billing center the direct costs of the center, as well as the costs allocated from the service departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started