Question: Need helpanswering this question please.... must show working!! Problem 1. David Jones, the new administrator for a surgical clinic, was trying to determine how to

Need helpanswering this question please.... must show working!!

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.

Square Footage

Direct Expenses

Lab Tests

Utilities

200,000

Administration

2,000

500,000

Laboratory

2,000

625,000

Day-op Suite

3,000

1,400,000

4,000

Cystoscopy

1,500

350,000

500

Endoscopy

1,500

300,000

500

Total

10,000

3,625,000

5,000

Based on the scenario above, what are the Endoscopy Department's total expenses?

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