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Blue Spruce's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $273000, $164400, and $60800, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct 16 8 Admin HR 48 20 8 Surgery ER 360 120 65 220 80 130 What amount of costs would be allocated from the administrative department to the other support departments (Acct and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.)

Blue Spruce's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $273000, $164400, and $60800, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct 16 8 Admin HR 48 20 8 Surgery ER 360 120 65 220 80 130 What amount of costs would be allocated from the administrative department to the other support departments (Acct and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.)

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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Blue Spruce's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $273000, $164400, and $60800, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct O $0. O $17290. O $18060. O $18753. 16 8 Admin 20 4 HR 48 8 Surgery ER 360 220 120 65 80 130 What amount of costs would be allocated from the administrative department to the other support departments (Acct and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.)
Transcribed Image Text:Blue Spruce's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $273000, $164400, and $60800, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct O $0. O $17290. O $18060. O $18753. 16 8 Admin 20 4 HR 48 8 Surgery ER 360 220 120 65 80 130 What amount of costs would be allocated from the administrative department to the other support departments (Acct and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.)
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