All billing in the hospital is done through Laboratory, Radiology, or General Hospital. The hospital's administrator...

 

Transcribed Image Text:

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. Note: 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. Housekeeping Services Food Services Administrative Services Laboratory Radiology General Hospital Departmental costs before allocations Allocations: $ 87,000 $ 301,060 $ 249,020 $ 405,900 $ 520,500 $ 475,800 Housekeeping Services costs 7,800 3,900 6,000 4,500 64,800 Food Services costs Administrative Services costs Total costs after allocations $ 87,000 $ 308,860 $ 252,920 $ 411,900 $ 525,000 $ 540,600 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. Note: 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. Housekeeping Services Food Services Administrative Services Laboratory Radiology General Hospital Departmental costs before allocations Allocations: $ 87,000 $ 301,060 $ 249,020 $ 405,900 $ 520,500 $ 475,800 Housekeeping Services costs 7,800 3,900 6,000 4,500 64,800 Food Services costs Administrative Services costs Total costs after allocations $ 87,000 $ 308,860 $ 252,920 $ 411,900 $ 525,000 $ 540,600

Answer rating: 100% (QA)

Cost Allocation using the StepDown Method Housekeeping Food Administrative Laboratory Radi... View the full answer