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Toledo Clinic has two patient services departments: Adult Services and Pediatric Services The patient services departments are supported by General Administration, Facilities, and Financial Services. The General Administration Department of Toledo Clinic has compiled the following information:

Toledo Clinic has two patient services departments: Adult Services and Pediatric Services The patient services departments are supported by General Administration, Facilities, and Financial Services. The General Administration Department of Toledo Clinic has compiled the following information:

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter4: Job-order Costing And Overhead Application
Section: Chapter Questions
Problem 64P: (Appendix 4B) Support Department Cost Allocation MedServices Inc. is divided into two operating...
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Toledo Clinic has two patient services departments: Adult Services and Pediatric Services The patient services departments are supported by General Administration, Facilities, and Financial Services. The General Administration Department of Toledo Clinic has compiled the following information: Department General Administration Facilities Financial Services Adult Services Pediatric Services O $420,000 O $280,000 Direct Costs $700,000 Ⓒ$700,000 $300,000 $1,000,000 $3,600,000 $4,400,000 Square Feet 4,000 O Can't tell from the information provided 1,000 5,000 42.000 48,000 Toledo Clinic has determined that the cost driver for General Administration and Financial Services is salary dollars and that the cost driver for Facilities is square feed. Using the direct method of cost allocation, what is the allocation of General Administration costs to Adult Services? Salary Dollars $1,200,000 $800,000 $2,000,000 $12,000,000 $8,000,000
Transcribed Image Text:Toledo Clinic has two patient services departments: Adult Services and Pediatric Services The patient services departments are supported by General Administration, Facilities, and Financial Services. The General Administration Department of Toledo Clinic has compiled the following information: Department General Administration Facilities Financial Services Adult Services Pediatric Services O $420,000 O $280,000 Direct Costs $700,000 Ⓒ$700,000 $300,000 $1,000,000 $3,600,000 $4,400,000 Square Feet 4,000 O Can't tell from the information provided 1,000 5,000 42.000 48,000 Toledo Clinic has determined that the cost driver for General Administration and Financial Services is salary dollars and that the cost driver for Facilities is square feed. Using the direct method of cost allocation, what is the allocation of General Administration costs to Adult Services? Salary Dollars $1,200,000 $800,000 $2,000,000 $12,000,000 $8,000,000
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