FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Toledo Clinic has two patient services departments: Adult Services and Pediatric Services The
patient services departments are supported by General Administration, Facilities, and Financial
Services. The General Administration Department of Toledo Clinic has compiled the following
information:
Department
General
Administration
Facilities
Financial Services
Adult Services
Pediatric Services
O $420,000
O $280,000
Direct Costs
$700,000
Ⓒ$700,000
$300,000
$1,000,000
$3,600,000
$4,400,000
Square Feet
4,000
O Can't tell from the information provided
1,000
5,000
42.000
48,000
Toledo Clinic has determined that the cost driver for General Administration and Financial Services
is salary dollars and that the cost driver for Facilities is square feed. Using the direct method of cost
allocation, what is the allocation of General Administration costs to Adult Services?
Salary Dollars
$1,200,000
$800,000
$2,000,000
$12,000,000
$8,000,000
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Transcribed Image Text:Toledo Clinic has two patient services departments: Adult Services and Pediatric Services The patient services departments are supported by General Administration, Facilities, and Financial Services. The General Administration Department of Toledo Clinic has compiled the following information: Department General Administration Facilities Financial Services Adult Services Pediatric Services O $420,000 O $280,000 Direct Costs $700,000 Ⓒ$700,000 $300,000 $1,000,000 $3,600,000 $4,400,000 Square Feet 4,000 O Can't tell from the information provided 1,000 5,000 42.000 48,000 Toledo Clinic has determined that the cost driver for General Administration and Financial Services is salary dollars and that the cost driver for Facilities is square feed. Using the direct method of cost allocation, what is the allocation of General Administration costs to Adult Services? Salary Dollars $1,200,000 $800,000 $2,000,000 $12,000,000 $8,000,000
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