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Woodbury Hospital provided the following data for its three service departments and three operating departments. Service Departments Food Administrative Services Services $ 87,000 $ 301,060 $ 249,020 800 6,500 Total cost Meals served Square feet of space Files processed Service Department Housekeeping Services Food Services Administrative Services Housekeeping Services 5,000 Departmental costs before allocations Allocations: Housekeeping Services costs Food Services costs Allocation Bases Square feet of space Meals served Files processed Administrative Services costs Total costs after allocations 13,000 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: Operating Departments 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. Laboratory Radiology $ 405,900 $ 520,500 2,000 10,000 1,000 7,500 14,000 7,000 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. Housekeeping Services General Hospital $ 475,800 68,000 Note: 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. 108,000 25,000 Food Services Administrative Services Total $ 2,039, 280 71,800 150,000 46,000 Laboratory Radiology General Hospital $ 87,000 $ 301,060 $ 249,020 $ 405,900 $ 520,500 $ 475,800

Woodbury Hospital provided the following data for its three service departments and three operating departments. Service Departments Food Administrative Services Services $ 87,000 $ 301,060 $ 249,020 800 6,500 Total cost Meals served Square feet of space Files processed Service Department Housekeeping Services Food Services Administrative Services Housekeeping Services 5,000 Departmental costs before allocations Allocations: Housekeeping Services costs Food Services costs Allocation Bases Square feet of space Meals served Files processed Administrative Services costs Total costs after allocations 13,000 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: Operating Departments 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. Laboratory Radiology $ 405,900 $ 520,500 2,000 10,000 1,000 7,500 14,000 7,000 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. Housekeeping Services General Hospital $ 475,800 68,000 Note: 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. 108,000 25,000 Food Services Administrative Services Total $ 2,039, 280 71,800 150,000 46,000 Laboratory Radiology General Hospital $ 87,000 $ 301,060 $ 249,020 $ 405,900 $ 520,500 $ 475,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Woodbury Hospital provided the following data for its three service departments and three operating departments. Total cost Meals served Square feet of space. Files processed Service Department Housekeeping Services Food Services Administrative Services Departmental costs before allocations Allocations: Service Departments Housekeeping Food Administrative Services Services $ 301,060 $ 87,000 Services $ 249,020 800 5,000 6,500 Housekeeping Services costs Food Services costs 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: Allocation Bases Square feet of space Meals served Files processed Administrative Services costs Total costs after allocations 13,000 Operating Departments 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. Housekeeping Services $ Laboratory Radiology $ 405,900 $ 520,500 2,000 10,000 1,000 7,500 14,000 7,000 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. Note: 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. General Hospital $ 475,800 68,000 108,000 25,000 Food Services Administrative Services 87,000 $ 301,060 $ 249,020 $ 405,900 $ 520,500 $ Laboratory Radiology Total $ 2,039, 280 71,800 150,000 46,000 General Hospital 475,800
Transcribed Image Text:Woodbury Hospital provided the following data for its three service departments and three operating departments. Total cost Meals served Square feet of space. Files processed Service Department Housekeeping Services Food Services Administrative Services Departmental costs before allocations Allocations: Service Departments Housekeeping Food Administrative Services Services $ 301,060 $ 87,000 Services $ 249,020 800 5,000 6,500 Housekeeping Services costs Food Services costs 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: Allocation Bases Square feet of space Meals served Files processed Administrative Services costs Total costs after allocations 13,000 Operating Departments 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. Housekeeping Services $ Laboratory Radiology $ 405,900 $ 520,500 2,000 10,000 1,000 7,500 14,000 7,000 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. Note: 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. General Hospital $ 475,800 68,000 108,000 25,000 Food Services Administrative Services 87,000 $ 301,060 $ 249,020 $ 405,900 $ 520,500 $ Laboratory Radiology Total $ 2,039, 280 71,800 150,000 46,000 General Hospital 475,800
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