Total cost Meals served Square feet of space Files processed Service Departments Service Department Housekeeping Services Food Services Administrative Services Housekeeping Food Administrative Services Services $ 98,000 $ 323,060 Services $ 271,020 1,900 8,700 6,100 16,300 Operating Departments Allocation Bases Square feet of space Meals served Files processed Laboratory Radiology $ 433,400 $ 564,500 4,200 2,100 13,300 8,600 19,500 12,500 General Hospital. $ 514,300 74,600 119,000 36,000 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: Total $ 2,204,280 82,800 172,000 68,000 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.

Total cost Meals served Square feet of space Files processed Service Departments Service Department Housekeeping Services Food Services Administrative Services Housekeeping Food Administrative Services Services $ 98,000 $ 323,060 Services $ 271,020 1,900 8,700 6,100 16,300 Operating Departments Allocation Bases Square feet of space Meals served Files processed Laboratory Radiology $ 433,400 $ 564,500 4,200 2,100 13,300 8,600 19,500 12,500 General Hospital. $ 514,300 74,600 119,000 36,000 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: Total $ 2,204,280 82,800 172,000 68,000 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.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 5PB: Allocating selling and administrative expenses using activity-based costing Shrute Inc. manufactures...

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Total cost Meals served Square feet of space Files processed Service Department Housekeeping Services Food Services Administrative Services Service Departments Housekeeping Food Administrative Services Services Services $ 98,000 $ 323,060 Departmental costs before allocations Allocations: 6,100 Housekeeping Services costs Food Services costs Administrative Services costs Total costs after allocations Allocation Bases Square feet of space Meals served Files processed 16,300 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: Housekeeping Services (98,000) Laboratory Radiology $ 271,020 $ 433,400 $ 564,500 0 0 0 Operating Departments 1,900 8,700 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,…
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