Novak'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 $259000, $155900, and $70100, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR O $274249. $271874. Acct O SO. O $248799. 16 8 Admin 20 HR 48 8 Surgery 360 120 65 ER 220 80 What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediate calculations.) 130

Novak'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 $259000, $155900, and $70100, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR O $274249. $271874. Acct O SO. O $248799. 16 8 Admin 20 HR 48 8 Surgery 360 120 65 ER 220 80 What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediate calculations.) 130

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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