What are the total costs allocated to the surgery department from the supporting departments?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sheffield'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 $271900, $161800, and $58900, 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.)
○ $279192.
O $281374.
O $256045.
○ $0.
Transcribed Image Text:Sheffield'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 $271900, $161800, and $58900, 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.) ○ $279192. O $281374. O $256045. ○ $0.
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