Please Answer For The Hospital Only What is it asking what

Please Answer For The Hospital Only

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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:

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

ACCTSOS 4-10 All applicable exercises and problems are available with McGraw-Hill\'s Commect Accounting EXERCISE 4B-1 Direct Method IL04-10 App Seatle Western University has provided the following data to be usod in its service department cost allocations Service Departments Facility Undergraduats Graduate Administration Services Programs Programs Departmental costs before $2,400,000 $1,800,000$26,800,000 $5,700,000 5,000 30,000 Student credit hours 20,000 0,000 Space occupled-square feet 25,000 10,000 Required Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the costs of Administration on the basis of student credit-hours and Facility Services costs on the basis of space occupied EXERCISE 4B-2 Step-Dewn Methed 1104-11 Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in its service department cost allocations Service Departments Operating Departments Administration Janitorial Grocories Gt $40,000 160 $15 aooo $950,000 $232000 3,100 Departmenta costs betrtoatons Space occupled-square feet 250 100 4,0001,000 Sign Out

Solution

Allocating on the basis of inter-service department services performed, First,house-keeping services costs are allocated ,then food services & finally admin. Services. House keeping Food Services Administrative Services Labaratory Radiology General Hospital Total Total cost before allocation 87000 301060 249020 405900 520500 475800 2039280 Cost of House keeping services Fixed(13000;6500;10000;7500;108000/150000)*87000 -84100 7540 3770 5800 4350 62640 (13000;6500;10000;7500;108000/145000)*2900 -2900 260 130 200 150 2160 Cost of food services: Variable(800;2000;1000;68000/71800)*(193860+7540) -201400 2244 5610 2805 190741 Fixed (0.8%;2.4%;1.6%;95.21%*(107200+260) -107460 860 2579 1719 102302 Costs of Administrative services: Variable(14000;7000;25000/46000*(158840+2244) -161084 49026 24513 87546 Fixed cost(90180+3770+130+860)*30%;20%;50% -94940 28482 18988 47470 Total 0 0 0 497597 573025 968659 2039280 Labaratory Radiology General Hospital Total Direct costs 405900 520500 475800 1402200 Allocated service dept. costs 91697 52525 492859 637080.3 Total costs 497597 573025.2 968659 2039280