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Zoopsia allocates Power Generation cost first on the basis of kilowatt hours. Zoopsia then allocates Laundry cost on the basis of the number of

Zoopsia allocates Power Generation cost first on the basis of kilowatt hours. Zoopsia then allocates Laundry cost on the basis of the number of employees. Operating costs in Power Generation for last year were $250,000. Operating costs in Laundry for last year were $60,000. No distinction is made between variable and fixed costs. 56. If service department costs are allocated using the direct method, what is the total amount. of service cost that would be allocated to the Emergency Room? 57. If service department costs are allocated using the step-down method, what is the total amount of service cost that will be allocated to Maternity? 58. If service department costs are allocated using the step-down method, how much service cost will remain in the Power Generation department after allocation? Zoopsia allocates Power Generation cost first on the basis of kilowatt hours. Zoopsia then allocates Laundry cost on the basis of the number of employees. Operating costs in Power Generation for last year were $250,000. Operating costs in Laundry for last year were $60,000. No distinction is made between variable and fixed costs. 56. If service department costs are allocated using the direct method, what is the total amount. of service cost that would be allocated to the Emergency Room? 57. If service department costs are allocated using the step-down method, what is the total amount of service cost that will be allocated to Maternity? 58. If service department costs are allocated using the step-down method, how much service cost will remain in the Power Generation department after allocation? Zoopsia allocates Power Generation cost first on the basis of kilowatt hours. Zoopsia then allocates Laundry cost on the basis of the number of employees. Operating costs in Power Generation for last year were $250,000. Operating costs in Laundry for last year were $60,000. No distinction is made between variable and fixed costs. 56. If service department costs are allocated using the direct method, what is the total amount. of service cost that would be allocated to the Emergency Room? 57. If service department costs are allocated using the step-down method, what is the total amount of service cost that will be allocated to Maternity? 58. If service department costs are allocated using the step-down method, how much service cost will remain in the Power Generation department after allocation? Zoopsia allocates Power Generation cost first on the basis of kilowatt hours. Zoopsia then allocates Laundry cost on the basis of the number of employees. Operating costs in Power Generation for last year were $250,000. Operating costs in Laundry for last year were $60,000. No distinction is made between variable and fixed costs. 56. If service department costs are allocated using the direct method, what is the total amount. of service cost that would be allocated to the Emergency Room? 57. If service department costs are allocated using the step-down method, what is the total amount of service cost that will be allocated to Maternity? 58. If service department costs are allocated using the step-down method, how much service cost will remain in the Power Generation department after allocation?

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56 To find the total amount of service cost that would be allocated to the Emergency Room using the direct method we need the cost allocation bases for both the Power Generation and Laundry departments Lets assume that the cost allocation base for Power Generation is kilowatt hours KWH and the cost allocation base for Laundry is the number of employees Suppose the total kilowatt hours generated by the Power Generation department ... blur-text-image

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