Grouper's Medical operates three support departments and two operating units, Surgery and ER. The support de allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and huma departments is $263700, $159700, and $63600, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct 16 B Admin HR 46 20 4 B Surgery ER 360 220 120 65 60 130
Grouper's Medical operates three support departments and two operating units, Surgery and ER. The support de allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and huma departments is $263700, $159700, and $63600, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct 16 B Admin HR 46 20 4 B Surgery ER 360 220 120 65 60 130
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2.
Transcribed Image Text:Grouper'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 $263700, $159700, and $63600, respectively. Information on the hours used are as follows:
Hours in Acct
S
Hours in Admin
Hours in HR
Acct
O $27678.
O $29101
O $29314.
16
B
Admin HR
20
4
46
B
Surgery ER
360
220
120
65
60
130
What amount of costs would be allocated from the accounting department to the other support departments (admin and HR) using
the reciprocal method to allocate costs? (Do not round the Intermediate calculations.)
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