Use the data below to allocate indirect expenses. Allocate utilities based on square footage of each department. Allocate admin expense based on direct costs, and allocate laboratory based on tests. How indirect costs will be distributed? Show your work.

A B Square Feet Dept. Costs Lab Tests Utilities $300,000 Administration 3,000 $700,000 Laboratory 4,000 $800,000 Day Op suite 5,000 $1,800,000 6,000 Cystoscopy 2,000 $600,000 2,000 Endoscopy Total 2,500 $650,000 2,000 16,500 $4,850,000 10,000