Zachary Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $453,200. The annual cost of operating the computer services department is $345,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Sewell clinic Alphretta clinic Gwinnett clinic Legal services. Computer services Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics: c. Compute the total allocated cost of service centers for each clinic. Required A Number of Patients 6,400 5,200 7,200 Sewell clinic Alphretta clinic Gwinnett clinic Complete this question by entering your answers in the tabs below. Required B Required C Legal services Total allocated cost Number of Workstations 12 Allocate the cost of computer services to all of the clinics and the legal services department. Department Allocated Cost $ 226690 0 18 < Prev 27 of 29 H Next >
Zachary Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $453,200. The annual cost of operating the computer services department is $345,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Sewell clinic Alphretta clinic Gwinnett clinic Legal services. Computer services Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics: c. Compute the total allocated cost of service centers for each clinic. Required A Number of Patients 6,400 5,200 7,200 Sewell clinic Alphretta clinic Gwinnett clinic Complete this question by entering your answers in the tabs below. Required B Required C Legal services Total allocated cost Number of Workstations 12 Allocate the cost of computer services to all of the clinics and the legal services department. Department Allocated Cost $ 226690 0 18 < Prev 27 of 29 H Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Zachary Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area. The company's legal services
department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services
department. The annual cost of operating the legal services department is $453,200. The annual cost of operating the computer
services department is $345,000. The company uses the number of patients served as the cost driver for allocating the cost of legal
services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant
information follows.
I
Sewell clinic
Alphretta clinic
Gwinnett clinic
Legal services
Computer services
Required
a. Allocate the cost of computer services to all of the clinics and the legal services department.
b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics:
c. Compute the total allocated cost of service centers for each clinic.
Required A
Number of
Patients
6,400
5,200
7,200
Sewell clinic
Alphretta clinic
Gwinnett clinic
Required B Required C
Complete this question by entering your answers in the tabs below.
Legal services
Total allocated cost
Number of
Workstations
Allocated Cost
Allocate the cost of computer services to all of the clinics and the legal services department.
Department
$
226690
0
12
18
< Prev
27 of 29
Next >
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