### Departmental Cost Allocation Exercise#### Cost Allocation Table| Service Department | Operating Department ||--------------------------------|----------------------------------|| | Information Technology | Prenatal | Pediatric || **Administration** | | | | | **Departmental Costs** | $54,736 | $37,449 | $383,270 | $259,590 || **Employees** | 15 | 21 | 118 | 172 || **Personnel Costs** | 15 | 21 | 102 | 109 |#### Allocation Basis- **Administration Costs**: Allocated first based on **number of employees**.- **Information Technology Costs**: Allocated second based on **personnel costs**.### Problem StatementDetermine the total Pediatric Department cost after the allocations based on the provided information.#### Multiple Choice Options- $311,117- $280,845- $304,995- $311,400Use the information and allocation methods described to calculate the correct allocation. Think through the steps logically and utilize arithmetic skills for accuracy. Happy Learning!

Name: ### Departmental Cost Allocation Exercise#### Cost Allocation Table|
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: ### Departmental Cost Allocation Exercise#### Cost Allocation Table| Service Department | Operating Department ||--------------------------------|----------------------------------|| | Informatio

There are two types of department in business. One is service departments and other is Production…

Business

Accounting

Service Department Information Administration Technology $ 37,449 Operating Department Pediatric $ 259,590 Prenatal $ 54,736 $ 383,270 Departmental costs Employees Personnel costs 15 21 118 172 15 21 102 109 Administration costs are allocated first on the basis of employees and Information Technology costs are allocated second on the basis of Personnel costs. The total Pediatric Department cost after allocations is closest to: Multiple Choice $31,117 $280,845

Service Department Information Administration Technology $ 37,449 Operating Department Pediatric $ 259,590 Prenatal $ 54,736 $ 383,270 Departmental costs Employees Personnel costs 15 21 118 172 15 21 102 109 Administration costs are allocated first on the basis of employees and Information Technology costs are allocated second on the basis of Personnel costs. The total Pediatric Department cost after allocations is closest to: Multiple Choice $31,117 $280,845

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

PART I Brave Heart Hospital showed the following major hospital costs at various levels of activity for CY 2020: Month Hospital Admission Major Hospital Cost(P) February 1,300 P850,000.00 March 8,500 P1,350,000.00 April 1,600 P1,150,000.00 May 1,400 P950,000.00 June 1,200 P800,000.00 July 200 P50,000.00 August 1,650 P1,200,000.00 September 1,550 P1,050,000.00 The breakdown of the major hospital costs in the month of May at 1,400 hospital admission is as follows: Accommodation Expense (Variable) P400,000.00 Utilities (Fixed) P300,000.00 Medicine (Mixed) P250,000.00 Total Overhead Cost P950,000.00 Requirements: 1. Determine how much of major hospital cost for the month of August of P1,200,000.00 consisted of medicine cost 2. Using high-low method, determine the cost function for Medicine 3. Using high-low method, determine the cost function for major hospital cost 4. What would be the total major hospital cost if hospital admission is at 2,000?
Current Attempt in Progress Blue Spruce'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 $267800, $150600, and $71600, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct $0. $276955. $274542. $251890. 16 8 Admin 20 4 HR 48 8 Surgery ER 360 220 120 65 80 130 What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediate calculations.)
Management of Seattle Community Hospital has decided to allocate its three support departments (administration, public relations, and maintenance) to its three operating departments (surgery, in-patient, and out-patient). Budgeted information for the year follows: Direct costs administration $5,400,000 public relations 1,100,000 maintenace and janitorial 1,700,000 Surgery 9,000,000 In-patient 12,000,000 outpatient services 8,000,000 allocation Bases Administration Dollars of assets employed public relations Number of employees maintnance and Janitorial Hours of equipment operation Expected Utilizations Assets Employed Number of Employees Hours of Equipment Operation Administration $1,500,000 20 2,000 Public Relations 900,000 10 1,000 Maintenance and Janitorial 1,600,000 75 3,000 Surgery 4,000,000 20 25,000 In-patient care 2,500,000…
View Policies Current Attempt in Progress Blossom'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 $274500, $164700, and $66000, 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 HR department to the other support departments (Acct and Admin) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.) $5438. $0. $7203. $6894. eTextbook and Media
Do not give solution in image
A 74.
1. Of the following, choose the one that describes a situation where liabilities and expenses are manipulated to make a company appear less profitable? A. Liabilities are capitalized to increase revenues. B. Failure to record insurance expense for the period. C. Failure to record employee payroll earned but not paid as of period end. D. Failure to record warranty costs when the facts suggest that disclosure is more appropriate accounting treatment. E. None of the above.
! Required information Milford Industries provides medical equipment to oncology and surgical units in major hospitals. Milford allocates indirect costs to five departments and redistributes the IDC for Quality Assurance and Engineering to the other three departments monthly. The table summarizes IDC allocation and direct labor (DL) hours for one month. Department Production Subassemblies Final assembly Quality assurance Engineering IDC Allocation, $ 30,000 20,000 10,000 6,500 22,000 Actual DL Hours 350 850 450 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Determine the indirect cost rate. The indirect cost rate is $ per hour.
Management and Allocation Assignm... i) Saved Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Direct Costs $120,000 76,000 54,000 37,000 Maintenance Machining Assembly Department Machining Assembly Maintenance Cafeteria Cafeteria 0.6 0.2 0.2 0.1 0.2 0.7 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations.) To Cafeteria Machining Assembly From Maintenance…
Department Personnel Custodial Services Maintenance Printing Binding Personnel Custodial Services Maintenance Printing Binding Total budgeted cost Total Labor- Square Feet of Space Occupied Printing Department Binding Department Total hours Hours 16,000 8,200 14,300 30,600 108,000 177,100 Budgeted overhead costs in each department for the current year are shown below: $ 300,000 66,000 93,400 Req 1 Req 2 12,400 3,100 10,500 40,400 20,900 87,300 Machine-Hours 2,400 500 2,900 414,000 170,000 $ 1,043,400 Number of Employees 22 49 69 Req 3A 105 300 545 Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments. Machine- Hours Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the…
Cheyenne'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 $271000, $158300, and $68800, 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 are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediate calculations.) O $280035. O $282405. O $256681. O $0.
Example 1 Budgeted Data: Support Departments Janitor $415,000 12,000 VC or VMOH base: sq. ft. base: employees 25 (2) the step-down method, and Personnel $150,000 20,000 (3) the reciprocal method. 4 Operating Departments Mixing $130,000 10,000 75 Canning Determine the amount of Janitor and Personnel department costs that would be allocated to the Mixing and Canning departments' budgets using (1) the direct method $170,000 70,000 50