Question: Can you explain step by step how you got the answer? Thank you. Cherry Community Hospital has three support departments, Administration, Housekeeping and Finance, and

Can you explain step by step how you got the answer? Thank you.
Cherry Community Hospital has three support departments, Administration, Housekeeping and Finance, and three patient services departments, Medicine, Surgery and Pharmacy. Administration provides the most services to other departments followed by Housekeeping and then Finance. The results of a step-down cost allocation for Cherry Community Hospital are presented below: Given the information above, what were total direct costs (the original cost pool) for the Finance Department? A. $21,000 B. $17,000 C. $19,000 D. $14,000 E. $16,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
