Brook Health Care Center, Inc., has three clinics servicing the Birmingham 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 company uses the number of computer workstations as the cost driver for allocating the cost of computer services and the number of patients as the cost driver for allocating the cost of legal services. The annual cost of the Department of Legal Services was $340,000, and the annual cost of the Department of Computer Services was $250,000. Other relevant information follows.

Required
a. Construct a spreadsheet like the following one to allocate the service costs using the step method.

Spreadsheet Tips
1. The headings in rows 4 and 5 are right aligned. To right align text, choose Format, then Cells, and then click on the tab titled Alignment, and set the horizontal alignment to Right. The shortcut method to right align text is to click on the right align icon in the middle of the second tool bar.
2. The supporting calculation section must be completed simultaneously with the allocation table. However, most of the supporting calculations can be completed first. The exception is that the value in cell F13 refers to the sum of cells F6 and F7.

Transcribed Image Text:

Number of Workstations Number of Patients 3,100 2,300 2,800 Hoover Clinic Eastwood Clinic Gardendale Clinic Legal Services 17 13 6 14