Blue Spruce's Medical operates three support departments and two operating units, Surgery and ER. The support departments areallocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR)departments is $272600, $158000, and $59400, respectively. Information on the hours used are as follows:AcctAdminHRSurgeryERHours in Acct2048360220Hours in Admin16812080Hours in HR8465130What are the total costs allocated to the ER department from the supporting departments? (Do not round the intermediate calculations.)O $199987.O $212460.O $0.O $186182.

The cost allocation to the operating units from the support department will be allocated on the…

Answered: Blue Spruce's Medical operates three…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 56P

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