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Kirby Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $200,000. The annual cost of operating the computer services department is $360,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Sevell clinic Alphretta clinic Gwinnett clinic Legal services Computer services Number of Patients 6,000 4,200 5,800 Number of Workstations 18 16 18 8 10 Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic.

Kirby Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $200,000. The annual cost of operating the computer services department is $360,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Sevell clinic Alphretta clinic Gwinnett clinic Legal services Computer services Number of Patients 6,000 4,200 5,800 Number of Workstations 18 16 18 8 10 Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic.

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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Kirby Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $200,000. The annual cost of operating the computer services department is $360,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Sewell clinic Alphretta clinic Gwinnett clinic Legal services Computer services Number of Patients 6,000 4,200 5,800 Number of Workstations 18 16 18 В 10 Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic. Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Kirby Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $200,000. The annual cost of operating the computer services department is $360,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Sewell clinic Alphretta clinic Gwinnett clinic Legal services Computer services Number of Patients 6,000 4,200 5,800 Number of Workstations 18 16 18 В 10 Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic. Complete this question by entering your answers in the tabs below.
a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic. Complete this question by entering your answers in the tabs below. Required A Required B Allocate the cost of computer services to all of the clinics and the legal services department. Department Sewell clinic Alphretta clinic Gwinnett clinic Legal services Total allocated cost Show Transcribed Text Department Hequirea a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic. Sewell clinic Alphretta clinic Gwinnett clinic Total allocated cost Complete this question by entering your answers in the tabs below. Required A Required B Required C After allocating the cost of computer services, allocate the cost of legal services to the three clinics. (Do not round intermediate calculations.) Required C Show Transcribed Text Allocated Cost $ $ Allocated Cost Required A Required B Sewell clinic Alphretta clinic Gwinnett clinic Total allocated cost Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic. 0 0 Complete this question by entering your answers in the tabs below. $ Required C Compute the total allocated cost of service centers for each clinic. (Do not round intermediate calculations.) Department Allocated Cost
Transcribed Image Text:a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic. Complete this question by entering your answers in the tabs below. Required A Required B Allocate the cost of computer services to all of the clinics and the legal services department. Department Sewell clinic Alphretta clinic Gwinnett clinic Legal services Total allocated cost Show Transcribed Text Department Hequirea a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic. Sewell clinic Alphretta clinic Gwinnett clinic Total allocated cost Complete this question by entering your answers in the tabs below. Required A Required B Required C After allocating the cost of computer services, allocate the cost of legal services to the three clinics. (Do not round intermediate calculations.) Required C Show Transcribed Text Allocated Cost $ $ Allocated Cost Required A Required B Sewell clinic Alphretta clinic Gwinnett clinic Total allocated cost Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic. 0 0 Complete this question by entering your answers in the tabs below. $ Required C Compute the total allocated cost of service centers for each clinic. (Do not round intermediate calculations.) Department Allocated Cost
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