II. Problems 1. (49 points) Central Medical Clinic has two service departments, Building Services and Energy and three operating departments, Pediatrics, Geriatrics, and Surgery. Central allocates the cost of Building Services on the basis of square footage and Energy on the basis of patient days. No distinction is made between Variable and fixed costs. Operating data for the year just completed follow: Service Departments Operating Departments Building Services Energy Pediatries Geriatrics Surgery Direct costs $25,000 $10,000 $90,000 $60,000 $100,000 Square footage 14,000 8,000 8,000 18,000 Patient days 3,000 5,500 8,800 7, 700 Required: (Calculate allocation ratios to four decimal points, and show all calculations) (a) (15 points) Prepare a schedule to allocate service department costs to operating departments using the direct method (round all dollar amounts to the nearest whole dollar). Show total costs for each department after allocation. (b) (16 points) Prepare a schedule to allocate service department costs to operating departments using the step method, allocating Building Services first round all amounts to the nearest whole dollar). Show total costs for each department after allocation. (c) (Extra Credit: 18 points) Allocate service department costs to operating departments using the algebraic method, round all amounts to the nearest whole dollar). Show total costs for each operating department after allocation