Using the data in this chapters Review Problem for the direct and step methods of service cost

Using the data in this chapter’s Review Problem for the direct and step methods of service cost allocation, construct two spreadsheets. Build the spreadsheets so that they can be used as templates for any problem in direct or step cost allocation presented in this chapter. The following tables provide row and column headings to begin building the templates:

1. Assume that the order of allocation in the Review Problem is Housekeeping, Administration, Medical Records, and Patient Accounting. This change in allocation order may affect the total cost in each revenue center. Use the spreadsheet template for the direct method to assign service center costs.
2. Assume that the order of allocation is the same as in requirement 1. Use the spreadsheet template for the step method to assign service centercosts.

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Spreadsheet Template for Direct Methad of Service Cost Allocatiosn Patient Allocation Allocation Allocation House. Admn Medical Account Fraction: keeping stration Records Ing 5020S80 Fraction Radin. Fracti Labo ClinlC Clinic Radiology lory ratory ratory Total sTotal center cots Assign cosis 120 $300 5500 $400 2,200 Housekeeping Administration Mecical Records Patient counting Total revenue center costs aner allocation Overhead rate for ciinic $1,000 $ Overhead rate for 2 aciolog Overhead rate for laboratory 615,000- 25 Spreadsheet Template for Step Method of Service Coet Allocation Allocalios Fraction- Allocation raetion Allocation House Adminsi-AdminiMedicl MediePieat Aecount Fraotion: Fraction: Labo rds Aocounting Ing Clinte Radiolo lo Laborator Talal certer cots 350 Assigncosts rato Total 3400 32200 250 180 120 6800 Adistration Records Pebent Accourting Talal reveue e certer costs