Recent operational data for Broomfield Occupational Therapy Services are as follows: Center As costs are assigned on
Question:
Recent operational data for Broomfield Occupational Therapy Services are as follows:
Center A’s costs are assigned on the basis of square feet occupied, and Center B’s costs are assigned on the basis of the number of procedures performed. The number of patient visits is the basis for applying overhead. Assign all service center costs using the direct method, and determine the total cost of the revenue centers afterallocation.
Transcribed Image Text:
Service Service Revenue nue Costs incurred Percentage of square Center A Center B CenterC Center D $40,000 $30,000 $80,000 $70,000 20 30 10 40 feet occupied Number of procedures Number of patient visits 200 600 1,800 900 2,400 1,800
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Method Direct Allocation Allocation Service Service Fraction Fraction Center Ce...View the full answer
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Related Book For
Managerial Accounting
ISBN: 978-0618777181
8th Edition
Authors: Susan V. Crosson, Belverd E. Needles
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