Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Personnel Department costs are allocated on the basis of employee hours and Support Department costs are allocated on the basis of space occupied in square feet. The total Pediatrics Department cost after the allocations of service department costs is closest to:

Personnel Department costs are allocated on the basis of employee hours and Support Department costs are allocated on the basis of space occupied in square feet. The total Pediatrics Department cost after the allocations of service department costs is closest to:

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question
### Allocation of Service Department Costs in Behrend Clinic **Cost Allocation in Behrend Clinic** Behrend Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating departments, Prenatal and Pediatrics. #### Cost Allocation Breakdown | Item | Service Departments | Operating Departments | |-------------------------|---------------------|-----------------------| | | Personnel | Support | Prenatal | Pediatrics | | **Departmental costs** | $20,680 | $45,036 | $109,790 | $298,930 | | **Employee hours** | 5,000 | 1,000 | 30,000 | 17,000 | | **Space occupied (sq. ft.)** | 3,000 | 2,000 | 45,000 | 9,000 | #### Allocation Bases - *Personnel Department costs* are allocated based on employee hours. - *Support Department costs* are allocated based on space occupied in square feet. #### Objective Calculate the total Pediatrics Department cost after the allocation of service department costs. ##### Multiple-Choice Options 1. $313,916 2. $306,436 3. $318,556 4. $313,283 #### Graphs and Diagrams The table above provides a detailed breakdown of the departmental costs, employee hours, and space occupied for the service and operating departments. The data will be used to allocate the costs from the service departments (Personnel and Support) to the operating departments (Prenatal and Pediatrics) using the specified allocation bases. This educational breakdown will aid in understanding the application of cost allocation methods in real-world scenarios, particularly in healthcare settings like Behrend Clinic. The goal is to accurately determine the costs associated after allocations, enhancing budgeting and financial planning skills. --- **Note:** Ensure to apply the direct method correctly by following the allocation bases provided to determine the accurate total Pediatrics Department cost. Select the closest answer from the multiple-choice options given.
Transcribed Image Text:### Allocation of Service Department Costs in Behrend Clinic **Cost Allocation in Behrend Clinic** Behrend Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating departments, Prenatal and Pediatrics. #### Cost Allocation Breakdown | Item | Service Departments | Operating Departments | |-------------------------|---------------------|-----------------------| | | Personnel | Support | Prenatal | Pediatrics | | **Departmental costs** | $20,680 | $45,036 | $109,790 | $298,930 | | **Employee hours** | 5,000 | 1,000 | 30,000 | 17,000 | | **Space occupied (sq. ft.)** | 3,000 | 2,000 | 45,000 | 9,000 | #### Allocation Bases - *Personnel Department costs* are allocated based on employee hours. - *Support Department costs* are allocated based on space occupied in square feet. #### Objective Calculate the total Pediatrics Department cost after the allocation of service department costs. ##### Multiple-Choice Options 1. $313,916 2. $306,436 3. $318,556 4. $313,283 #### Graphs and Diagrams The table above provides a detailed breakdown of the departmental costs, employee hours, and space occupied for the service and operating departments. The data will be used to allocate the costs from the service departments (Personnel and Support) to the operating departments (Prenatal and Pediatrics) using the specified allocation bases. This educational breakdown will aid in understanding the application of cost allocation methods in real-world scenarios, particularly in healthcare settings like Behrend Clinic. The goal is to accurately determine the costs associated after allocations, enhancing budgeting and financial planning skills. --- **Note:** Ensure to apply the direct method correctly by following the allocation bases provided to determine the accurate total Pediatrics Department cost. Select the closest answer from the multiple-choice options given.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Optimization models
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS