Week 5 - Application Assignment Problem 1 The All Souls Hospital has three service departments (Nursing Support, Maintenance and Administration) and two operating depanments (Inpatient and Outpatient) Selected data from a recent period on the five departments follows. Service Departments Operating Departments Direct Costs Number of Employees Square Feet of Space Occupied Patient Hours Nursing Support S140:ooo 60 15,000 Maintenance Administration S105:ooo 35 10,000 S48:ooo 140 20,000 Inpatient S275:ooo 315 40,000 30,000 Outpatient S430:ooo 210 100,000 60,000 Total 998,000 760 185,000 90,000 Hospital Administrators use the following for cost allocation: Allocates Nursing Support based upon Number of Employees Allocates Maintenance based upon Square Feet of Space Occupied Allocates Administration based upon Patient Hours Complete the following: 2. Use the step method to allocate the service department costs to the operating departments based upon the information above and determine the new costs for Inpatient and Outpatient Use the following order: Nursing Support, Maintenance, Administration. Use the direct method to allocate the service department costs to the operating departments.