Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 $94,000 $315,060 $263,020 1,500 5,700 15,100 7,900 Operating Departments General Laboratory Radiology Hospital $423,400 $548,500 $500,300 3,400 1,700 72,200 12,100 8, 200 115,000 17,500 10,500 32,000 Total $2,144,280 78,800 164,000 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 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.) General Housekeeping Services $ 94,000 Food Services $ 315,060 Administrative e Services $ 263,020 Laboratory $ 423,400 Radiology $ 548,500 $ 500,300 Departmental costs before allocations Allocations: Housekeeping Services costs Food Services costs Administrative Services costs Total costs after allocations
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started