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Woodbury Hospital has three service departments and three operating departments. Estimated cost and operating data for all departments in the hospital for the forthcoming quarter
Woodbury Hospital has three service departments and three operating departments. Estimated cost and operating data for all departments in the hospital for the forthcoming quarter are presented in the table below: Service Departments Housekeeping Food Administrative Services Services Services $102,000 $331,060 $279,020 2,300 6,500 17,500 9,500 Total cost Meals served Square feet of space Files processed Operating Departments General Laboratory Radiology Hospital $443,400 $580,500 $528,300 5,000 2,500 77,000 14,500 9,000 123,000 21,500 14,500 40,000 Total $2,264, 280 86,800 180,000 76,000 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 ugh Labo ory, 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.) Housekeeping Services Food Services Administrative Services Laboratory Radiology General Hospital 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.) Laboratory Radiology Housekeeping Services $ 102,000 Food Services $ 331,060 Administrative Services $ 279,020 General Hospital $ 528,300 $ 443,400 $ 580,500 Departmental costs before allocations Allocations: Housekeeping Services costs Food Services costs Administrative Services costs Total costs after allocations $ 102,000 $ 331,060 $ 279,020 $ 443,400 $ 580,500 $ 528,300
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