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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: Service Departments Operating Departments: Housekeeping Total cost Services $98,000 Food Services Administrative $323,060 Heals served Square feet of space Files processed 6,100 16,300 Services $271,020 1,900 8,700 Laboratory $433,400 Radiology $564,500 General Hospital $514,300 Total $2,204,280 4,200 13,300 19,500 2,100 8,600 74,600 119,000 82,800 172,000 12,500 36,000 68,000 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 Piles 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.)
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