Behrend Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating departments, Prenatal and Pediatrics. Departmental costs Employee hours Space occupied Multiple Choice $441,260 Personnel Department costs are allocated on the basis of employee hours and Support Department costs are allocated on the basis of space occupied in square feet. The total Pediatrics Department cost after the allocations of service department costs is closest to O$443.660 $433,440 Service Department Personnel Support $ 55,040 1,000 2,000 O$444,471 $ 29,200 5,000 3,000 Operating Department Prenatal Pediatrics $ 242,050 $423,200 26,000 14,000 35,000 8,000

Behrend Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating departments, Prenatal and Pediatrics. Departmental costs Employee hours Space occupied Multiple Choice $441,260 Personnel Department costs are allocated on the basis of employee hours and Support Department costs are allocated on the basis of space occupied in square feet. The total Pediatrics Department cost after the allocations of service department costs is closest to O$443.660 $433,440 Service Department Personnel Support $ 55,040 1,000 2,000 O$444,471 $ 29,200 5,000 3,000 Operating Department Prenatal Pediatrics $ 242,050 $423,200 26,000 14,000 35,000 8,000

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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