Martinez'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 $261100, $156800, and $55000, respectively. Information on the hours used are as follows: Acct Admin HR Surgery ER Hours in Acct 20 48 360 220 Hours in Admin 16 8 120 80 Hours in HR 8 4 65 130 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.) O $27522. O $28768. O $0. $28981.
Martinez'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 $261100, $156800, and $55000, respectively. Information on the hours used are as follows: Acct Admin HR Surgery ER Hours in Acct 20 48 360 220 Hours in Admin 16 8 120 80 Hours in HR 8 4 65 130 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.) O $27522. O $28768. O $0. $28981.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Martinez'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 $261100, $156800, and $55000, respectively. Information on the hours used are as follows:
Acct
Admin
HR Surgery
ER
Hours in Acct
20
48
360
220
Hours in Admin
16
8
120
80
Hours in HR
8
4
65
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.)
O $27522.
O $28768.
O $0.
$28981.
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