Information for Computing the Allocation of Hospital Administration to Patient Care Service Departments Operating Departments Description Hospital Administration Custodial Services Laboratory Patient Care Total Departmental costs before allocation $360,000 $90,000 $261,000 $689,000 $1,400,000 Employee hours 12,000 2,000 18,000 30,000 62,000 Space occupied - square feet 10,000 200 5,000 45,000 60,200 Hospital administration is allocated first using employee hours. Custodial services are allocated second using square feet. Under the step-down method of service department cost allocation, what is the allocation of hospital administration to patient care?

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To allocate the hospital administration costs to patient care using the stepdown method we first all... View the full answer