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6. a.

Rooney Health Care Center Incorporated has three clinics servicing the Seattle 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 annual cost of operating the legal services department is $270,300 The annual cost of operating the computer services department is $379,200. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant informatlon follows. Number- of Number- of Patients Workstations Sewell clinic 6,388 19 Alphretta clinic 5,366 7 Guinnett clinic 6,988 15 Legal services 3' Computer services 14 Required at. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic. Required A Required 5 Required (2 Allocate the cost of computer services to all of the clinics and the legal services department. Seweil clinic Alphretta clinic Gwinneti clinic Legal services Total allocated cost Required A Required B Required C After allocating the cost of computer services, allocate the cost of legal services to the three clinics. Note: Do not round intermediate calculations. Department Allocated Cost Sewell clinic Alphretta clinic Gwinnett clinic Total allocated cost $ 0Required A Required B Required C Compute the total allocated cost of service centers for each clinic. Note: Do not round intermediate calculations. Department Allocated Cost Sewell clinic Alphretta clinic Gwinnett clinic Total allocated cost $ 0Quinlan Trust Corporation has two service departments: actuary and economic analysis. Quinlan also has three operating departments: annuity, fund management, and employee benefit services. The annual costs of operating the service departments are $572,000 for actuary and $858000 for economic analysis. Quinlan uses the direct method to allocate service center costs to operating departments. Other relevant data follow. Operating Cost-.5\" Revenue Annuity 5 766,666 $ 395,666 Fund management 1,160,886 1,398,688 Employee benefit services 866,666 1,296,666 'The operating costs are measured before allocating service center costs. Required a. Use operating costs as the cost driver for allocating service center costs to operating departments. b. Use revenue as the cost driver for allocating service center costs to operating departments. Required A Required B Use operating costs as the cost driver for allocating service center costs to operating departments. Note: Round "Allocation Rate" to 2 decimal places. Allocation of actuary cost: Department Allocation Rate x Weight of Base = Allocated Cost Annuity X $ 0 Fund management X 0 EBS X 0 Total allocated cost $ 0 Allocation of economic analysis cost: Department Allocation Rate x Weight of Base = Allocated Cost Annuity X = 0 Fund management X 0 EBS X 0 Total allocated cost $ 0Required A Required B Use revenue as the cost driver for allocating service center costs to operating departments. Note: Round "Allocation Rate" to 2 decimal places. Fund management 0000 Total allocated cost $ Fund management 0000 Total allocated cost $