operating the legal services department is $200,000. The annual cost of operating the computer services company uses the number of patients served as the cost driver for allocating the cost of legal services an orkstations as the cost driver for allocating the cost of computer services. Other relevant information follow ic linic Number of Patients 6,000 4,200 r 000 Number of Workstations 18 16 10

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Please don't give image format and solve all required
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.
Required A
Number of
Patients.
6,000
4,200
5,800
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.
Sewell clinic
Alphretta clinic
Gwinnett clinic
Number of
Workstations
18
16
18
8
Required B Required C
Legal services
Total allocated cost
Allocate the cost of computer services to all of the clinics and the legal services department.
Department
10
Allocated Cost
$
0
$
0
Required A
Required B >
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. Required A Number of Patients. 6,000 4,200 5,800 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. Sewell clinic Alphretta clinic Gwinnett clinic Number of Workstations 18 16 18 8 Required B Required C Legal services Total allocated cost Allocate the cost of computer services to all of the clinics and the legal services department. Department 10 Allocated Cost $ 0 $ 0 Required A Required B >
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education