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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 16,300 Departmental costs before allocations Allocations: Housekeeping Services costs Food Services costs Administrative Services costs Total costs after allocations 6,100 Allocation Bases Square feet of space Meals served Files processed 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 $ 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.) Food Services Administrative Services $ 98,000 $ 323,060 $ 271,020 $ (98,000) Laboratory Radiology $ 271,020 $ 433,400 $ 564,500 1,900 2,100 8,600 8,700 12,500 0 0 0 $ Operating Departments 0 4,200 13,300 19,500 323,060 $ General Hospital $ 514,300 74,600 119,000 36,000 271,020 $ Total $ 2,204,280 82,800 172,000 68,000 Laboratory Radiology 433,400 $ 564,500 $ 433,400 $ 564,500 $ General Hospital 514,300 514,300
Transcribed Image Text: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 16,300 Departmental costs before allocations Allocations: Housekeeping Services costs Food Services costs Administrative Services costs Total costs after allocations 6,100 Allocation Bases Square feet of space Meals served Files processed 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 $ 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.) Food Services Administrative Services $ 98,000 $ 323,060 $ 271,020 $ (98,000) Laboratory Radiology $ 271,020 $ 433,400 $ 564,500 1,900 2,100 8,600 8,700 12,500 0 0 0 $ Operating Departments 0 4,200 13,300 19,500 323,060 $ General Hospital $ 514,300 74,600 119,000 36,000 271,020 $ Total $ 2,204,280 82,800 172,000 68,000 Laboratory Radiology 433,400 $ 564,500 $ 433,400 $ 564,500 $ General Hospital 514,300 514,300
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