Woodbury Hospital has three service departments and three operating departments. Estimated cost and operating data for all departments in the hospital for the forthcoming quarter arc presented in the table below:

The costs of the service departments are allocated by the step-down method using the allocation bases and in the order shown in the following table:

All billing in the hospital is done through Laboratory, Radiology, or General Hospital. The hospital’s administrator wants the costs of the three service departments allocated to these three billing centers.

Required:

Prepare the cost allocation desired by the hospital administrator. (Use the step-down method.) Include under each billing center the direct costs of the center, as well as the costs allocated from the service departments.

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Service Departments Operating Departments Admin. Services General Hospital Food Services Housekeeping Services Total Radiology Laboratory $193,860 Variable costs. Fixed costs. $158,840 $ 74,500 401,300 $ 975,600 1,063,680 $243,600 $304,800 107,200 162,300 87,000 90,180 215,700 Total cost . $249,020 $520,500 $2,039,280 $87,000 $475,800 $301,060 $405,900 68,000 Meals served Percentage of peak-period needs-Food Services. Square feet of space Files processed 1,000 800 2,000 71,800 2.4% 95.2% 100% 0.8% 1.6% 5,000 10,000 13,000 6,500 7,500 108,000 150,000 14,000 7,000 25,000 46,000 Percentage of peak-period needs-Admin. Services 30% 20% 50% 100%