Total cost Meals served Square feet of space Files processed Service Department Housekeeping Services Food Services Administrative Services Service Departments Housekeeping Food Administrative Services Services $ 98,000 $323,060 Services $ 271,020 1,900 8,700 6,100 16,300 Departmental costs before allocations Allocations: Housekeeping Services costs Food Services costs Administrative Services costs Total costs after allocations The costs of the service departments are allocated by the step-down method using the allocation bases and in the order shown in the following table: Allocation Bases Square feet of space Meals served Files processed All billing in the hospital is done through Laboratory, Radiology, or General Hospital. The hospital's administrator wants the costs of the three service departments allocated to these three billing centers. Housekeeping Services Required: Using the step-down method, prepare the cost allocation desired by the hospital administrator. Include under each billing center the direct costs of the center, as well as the costs allocated from the service departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) $ (98,000) 0 Operating Departments Laboratory Radiology $433,400 $ 564,500 4,200 2,100 13,300 8,600 19,500 12,500 Administrative Services Food Services Laboratory Radiology $ 98,000 $323,060 $ 271,020 $ 433,400 $ 564,500 $ 0 0 $ 0 323,060 $ General Hospital $ 514,300 74,600 119,000 36,000 271,020 $ 433,400 $ Total $ 2,204,280 82,800 172,000 68,000 564,500 $ General Hospital 514,300 514,300
Total cost Meals served Square feet of space Files processed Service Department Housekeeping Services Food Services Administrative Services Service Departments Housekeeping Food Administrative Services Services $ 98,000 $323,060 Services $ 271,020 1,900 8,700 6,100 16,300 Departmental costs before allocations Allocations: Housekeeping Services costs Food Services costs Administrative Services costs Total costs after allocations The costs of the service departments are allocated by the step-down method using the allocation bases and in the order shown in the following table: Allocation Bases Square feet of space Meals served Files processed All billing in the hospital is done through Laboratory, Radiology, or General Hospital. The hospital's administrator wants the costs of the three service departments allocated to these three billing centers. Housekeeping Services Required: Using the step-down method, prepare the cost allocation desired by the hospital administrator. Include under each billing center the direct costs of the center, as well as the costs allocated from the service departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) $ (98,000) 0 Operating Departments Laboratory Radiology $433,400 $ 564,500 4,200 2,100 13,300 8,600 19,500 12,500 Administrative Services Food Services Laboratory Radiology $ 98,000 $323,060 $ 271,020 $ 433,400 $ 564,500 $ 0 0 $ 0 323,060 $ General Hospital $ 514,300 74,600 119,000 36,000 271,020 $ 433,400 $ Total $ 2,204,280 82,800 172,000 68,000 564,500 $ General Hospital 514,300 514,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Total cost
Meals served
Square feet of space
Files processed
Service Department
Housekeeping Services
Food Services
Administrative Services
Service Departments
Housekeeping Food Administrative
Services
Services
Services
$ 98,000 $ 323,060
Departmental costs before allocations
Allocations:
6,100
Housekeeping Services costs
Food Services costs
Administrative Services costs
Total costs after allocations
Allocation Bases
Square feet of space
Meals served
Files processed
16,300
The costs of the service departments are allocated by the step-down method using the allocation bases and in the order shown in the
following table:
Housekeeping
Services
(98,000)
Laboratory Radiology
$ 271,020 $ 433,400 $ 564,500
0
0
0
Operating Departments
1,900
8,700
All billing in the hospital is done through Laboratory, Radiology, or General Hospital. The hospital's administrator wants the costs of the
three service departments allocated to these three billing centers.
Required:
Using the step-down method, prepare the cost allocation desired by the hospital administrator. Include under each billing center the
direct costs of the center, as well as the costs allocated from the service departments. (Please enter allocations from a department as
negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations.
Round your answers to the nearest whole dollar amount.)
Food
Services
Administrative
Services
$ 98,000 $ 323,060 $ 271,020 $ 433,400 $
0
4,200
13,300
19,500
323,060 $
2,100
8,600
12,500
General
Hospital
514,300
74,600
119,000
36,000
Laboratory Radiology
271,020 $ 433,400 $
Total
$ 2,204,280
82,800
172,000
68,000
564,500 $
564,500
General
Hospital
514,300
514,300
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