Pleasant View Cinic has three service departments-Food Services, Administrative Services, and X-Ray Services. The costs of...
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Pleasant View Cinic has three service departments-Food Services, Administrative Services, and X-Ray Services. The costs of these departments are allocated by the step-down method, using the allocation bases and in the order shown below: Costa Incurred Variable Meais served Fixed Base for Allocation Service Department Food Services Peak-period needs Administrative Services Variable Files processed Fixed 10% X-ray Services, 20% Outpatient Clinic, 30% OB Care, and 40% General Clinic X-Ray Services Variable X-rays taken Foxed Peak-period needs Estimated cost and operating data for all departments in the clinic for the forthcoming month are presented below X-Ray Services $38, 100 59,520 General Clinic $ 53,400 344,744 OB Care Food Services $ 73,150 48,000 Admin. Services $ 6,800 33,040 Outpatient Clinic $11,700 26,958 Total $198,000 612,000 Variable costs Fixed costs $ 14,850 99,738 Total costs $121,150 $39,840 $97,620 $38,658 $114,588 $398, 144 $810,000 1,000 2% Meals served Percent of peak-period Food Services needs Files processed X-rays taken Percent of peak-period X-Ray Services needs 500 1% 1,500 3,000 1,200 13% 7.000 17% 900 350 3% 30,000 80% 12,000 8,400 84% 38,500 100% 17,400 9,950 100% All biling in the cinic is done through the Outpatient Clinic, OB Care, or General Clinic. The clinic's administrator wants the costs of the three service departments allocated to these three biling centres Required: Prepare the cost allocation desired by the clinic administrator. Include under each biling centre the direct costs of the centre as well as the costs allocated from the service departments. (Amounts to be deducted should be indicated with minus sign) Food Services Admin. Services X-Ray Services Out-patient Clinic OB General Clinic Care Variable costs Food Services allocation: 1,000 meals 500 meals 7,000 meals 30,000 meals Admin. Services allocation: 1,500 files 3,000 files 900 files 12,000 files X-Ray Services allocation: 1,200 X-rays 350 X-rays 8,400 X-rays Total variable costs Fixed costs Food Services allocation: 2% 1% 17% 80% Admin. Services allocation: 10% 20% 30% 40% X-Ray Services allocation: 13% 3% 84% Total fixed costs Total overhead costs Pleasant View Cinic has three service departments-Food Services, Administrative Services, and X-Ray Services. The costs of these departments are allocated by the step-down method, using the allocation bases and in the order shown below: Costa Incurred Variable Meais served Fixed Base for Allocation Service Department Food Services Peak-period needs Administrative Services Variable Files processed Fixed 10% X-ray Services, 20% Outpatient Clinic, 30% OB Care, and 40% General Clinic X-Ray Services Variable X-rays taken Foxed Peak-period needs Estimated cost and operating data for all departments in the clinic for the forthcoming month are presented below X-Ray Services $38, 100 59,520 General Clinic $ 53,400 344,744 OB Care Food Services $ 73,150 48,000 Admin. Services $ 6,800 33,040 Outpatient Clinic $11,700 26,958 Total $198,000 612,000 Variable costs Fixed costs $ 14,850 99,738 Total costs $121,150 $39,840 $97,620 $38,658 $114,588 $398, 144 $810,000 1,000 2% Meals served Percent of peak-period Food Services needs Files processed X-rays taken Percent of peak-period X-Ray Services needs 500 1% 1,500 3,000 1,200 13% 7.000 17% 900 350 3% 30,000 80% 12,000 8,400 84% 38,500 100% 17,400 9,950 100% All biling in the cinic is done through the Outpatient Clinic, OB Care, or General Clinic. The clinic's administrator wants the costs of the three service departments allocated to these three biling centres Required: Prepare the cost allocation desired by the clinic administrator. Include under each biling centre the direct costs of the centre as well as the costs allocated from the service departments. (Amounts to be deducted should be indicated with minus sign) Food Services Admin. Services X-Ray Services Out-patient Clinic OB General Clinic Care Variable costs Food Services allocation: 1,000 meals 500 meals 7,000 meals 30,000 meals Admin. Services allocation: 1,500 files 3,000 files 900 files 12,000 files X-Ray Services allocation: 1,200 X-rays 350 X-rays 8,400 X-rays Total variable costs Fixed costs Food Services allocation: 2% 1% 17% 80% Admin. Services allocation: 10% 20% 30% 40% X-Ray Services allocation: 13% 3% 84% Total fixed costs Total overhead costs
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Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
Posted Date:
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