Question: HSM Accounting Week 3 Homework Study Guide Problem 1. David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate

HSM Accounting Week 3 Homework Study Guide

Problem 1.David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer the question.

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