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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
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: Total cost Meals served Square feet of space Files processed Service Departments Operating Departments Housekeeping Services Food Services $ 94,000 $ 315,060 Administrative Services $ 263,020 Laboratory $ 423,400 5,700 15,100 1,500 7,900 3,400 12,100 17,500 Radiology $ 548,500 1,700 8,200 General Hospital $ 500,300 72,200 115,000 Total $ 2,144,280 78,800 164,000 10,500 32,000 60,000 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 Allocation Bases Housekeeping Services Food Services Administrative Services 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.) Housekeeping Services Food Services Administrative Services Laboratory General Radiology Hospital Departmental costs before allocations Allocations: $ 94,000 $ 315,060 $ 263,020 $ 423,400 $ 548,500 $ 500,300 Housekeeping Services costs Food Services costs Administrative Services costs Total costs after allocations
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