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 Food Administrative General Services Services Services Laboratory Total cost Radiology Hospital Total $99,000 $325,060 $273,020 $435,900 $568,500 $517,800 Meals served $2,219,280 2,000 4,400 2,200 5quare feet of space 75,200 83,800 6,200 16,600 8,900 13,600 8,700 Files processed 120,000 174,000 20,000 13,000 37,000 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 Survices 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.) Anansstrative Services les processes 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. (Plense enter allocations from a department as negative and allocations to a department os positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. Housekeeping Services 99,000 Food Services $ 325,060 Administrative Services $ 273,020 Laboratory Radiology General Hospital $ 517 800 $ 435 900 $ 568,500 Departmental costs before allocations Allocations Housekeeping Services costs Food Services costs Administrative Services costs Total costs aflet allocations (99,000) 9,794 (334,794) 5251 7.990 (286,261) 0 X & 8,024 17 579 81.780 $ 543,292 5,133 8.789 53,163 $ 635,585 70.798 300,436 151,309 $ 1.040 343 0 s 60
