Kolinski Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Telecommunications and Administration, and two operating departments, Surgery and Recovery. Tele communications Departmental costs Telecommunications ports Employees Service Departments Operating Department Administration $ 26,344 31 30 Surgery $ 27,472 14 11 Recovery $ 282,750 $ 599,690 34 40 74 27 Telecommunications Department costs are allocated on the basis of the number of telecommunications ports in departments and Administration Department costs are allocated on the basis of employees. The total Surgery Department cost after service department allocations is closest to: Multiple Choice $317,118 $314,853 $310,244 $305,921

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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D2.

Account 

Kolinski Surgical Hospital uses the direct method to allocate service department costs to operating departments. The
hospital has two service departments, Telecommunications and Administration, and two operating departments, Surgery
and Recovery.
Tele communications
Departmental costs
Telecommunications ports
Employees
Service Departments Operating Department
Administration
$ 26,344
31
30
Surgery
$ 27,472
14
11
Recovery
$ 282,750 $ 599,690
40
34
74
27
Telecommunications Department costs are allocated on the basis of the number of telecommunications ports in
departments and Administration Department costs are allocated on the basis of employees. The total Surgery Department
cost after service department allocations is closest to:
Multiple Choice
$317,118
$314,853
$310,244
$305,921
Transcribed Image Text:Kolinski Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Telecommunications and Administration, and two operating departments, Surgery and Recovery. Tele communications Departmental costs Telecommunications ports Employees Service Departments Operating Department Administration $ 26,344 31 30 Surgery $ 27,472 14 11 Recovery $ 282,750 $ 599,690 40 34 74 27 Telecommunications Department costs are allocated on the basis of the number of telecommunications ports in departments and Administration Department costs are allocated on the basis of employees. The total Surgery Department cost after service department allocations is closest to: Multiple Choice $317,118 $314,853 $310,244 $305,921
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