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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: Total cost Meals served Square feet of space Files processed Service Departments Housekeeping Food Administrative Services Services Services $101,000 $329,060 $277,020 2,200 6,400 17,200 9,300 Operating Departments General Laboratory Radiology Hospital $440,900 $576,500 $524,800 4,800 2,400 76,400 14,200 8,900 122,000 21,000 14,000 39,000 Total $2,249,280 85,800 178,000 74,000 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.) Housekeeping Food Administrative Services Services Services $ 101,000 $ 329,060 $ 277,020 Laboratory Radiology General Hospital $ 440,900 $ 576,500 $ 524,800 Departmental costs before allocations Allocations: Housekeeping Services costs Food Services costs Administrative Services costs Total costs after allocations $ 101,000 $ 329,060 $ 277,020 $ 440,900 $ 576,500 $ 524,800
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