(There are other examples of this but they divide it between Variable Cost and Fixed Cost and mine doesn't have that, also can you show steps on how to do this and not just the answers please? Thanks!!)
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(There are other examples of this but they divide it between
Variable Cost and Fixed...
Woodbury Hospital has three service departments and three operating departments. Estimated cost and operating data for...
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 are presented in the table below: Service Departments Operating Departments Housekeeping Services Food Services Administrative Services Laboratory Radiology General Hospital Total Total cost $96,000 $319,060 $267,020 $428,400 $556,500 $507,300 $2,174,280 Meals served 1,700 3,800 1,900 73,400 80,800 Square feet of space 5,900 15,700 8,300 12,700 8,400 117,000 168,000 Files processed 18,500 11,500 34,000 64,000 The...
Columbus Clinical Services (a multispecialty group practice) has three support departments, Administration, Housekeeping and Finance, and...
Columbus Clinical Services (a multispecialty group practice) has three support departments, Administration, Housekeeping and Finance, and three patient services departments, Medicine, Surgery and Pharmacy. Administration provides the most services to other departments followed by Housekeeping and then Finance. The results of a step-down cost allocation for Cherry Community Hospital are presented below: Administration Costs Allocated to: Housekeeping $2,000 Finance $1,000 Medicine $4,000 Surgery $5,000 Pharmacy $2,000 Housekeeping Costs Allocated to: Finance $1,000 Medicine $4,500 Surgery $8,000 Pharmacy $2,500 Finance Costs...
Zachary Information Services, Inc., has two service departments: human resources and billing. Zachary's operating departments, organized...
Zachary Information Services, Inc., has two service departments: human resources and billing. Zachary's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Legal Services Human Resources 20 $900,000 Number of employees Annual cost* Annual revenue Billing 50 $2,310,000 84 Health Care 208 $ 6,180,000 $...
Tacoma Hospital has three support departments and four patient services departments. The direct costs to each...
Tacoma Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follows: Tacoma Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follows: Direct Costs Cost Driver General Administration $2,000,000 Salary Dollars Facilities $5,000,000 Housekeeping Labor Hours Financial Services $3,000,000 Patient Services Revenue Total $10,000,000 The patient services revenue, salary dollars, and housekeeping labor hours for each...
Rundle Information Services, Inc., has two service departments: human resources and billing. Rundle's operating departments, organized...
Rundle Information Services, Inc., has two service departments: human resources and billing. Rundle's operating departments, organized according to the special Industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Health Care Human Resources 20 $ 900,000 Number of employees Annual cost Annual revenue Billing 50 $1,910,000 201 Retail 151 $ 4,910,000 $5,650,000...
Rundle Information Services, Inc., has two service departments: human resources and billing. Rundle's operating departments, organized...
Rundle Information Services, Inc., has two service departments: human resources and billing. Rundle's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Number of employees Annual cost Annual revenue Human Resources 20 $900,000 Billing 50 $1,910,000 Health Care 201 $ 6,110,000 $10,100,000 Retail 151 $4,910,000...
Finch Information Services, Inc., has two service departments: human resources and billing. Finch's operating departments, organized...
Finch Information Services, Inc., has two service departments: human resources and billing. Finch's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Human Resources $900,000 Number of employees Annual cost* Annual revenue 20 Billing 50 $2,710,000 Health Care 195 $6,050,000 $9,500,000 Retail 145 $4,850,000 $5,950,000...
The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two operating departments, Surgery...
The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two operating departments, Surgery and Outpatient. The hospital uses the direct method to allocate service department costs to operating departments. It allocates Cafeteria costs based on the number of employees. Cafeteria $40,000 20,000 Departmental costs before allocation Number of employees Housekeeping $10,000 15,000 Surgery $140,000 15,000 Outpatient $360,000 45,000 Total $550,000 Knowledge Check 01 How much Cafeteria cost should be allocated to the Surgery department? $6,316 $8,000 $30,000...
Use the following information to answer questions 1-3. The housekeeping services department of Ruger Clinic, a...
Use the following information to answer questions 1-3. The housekeeping services department of Ruger Clinic, a multispecialty practice in Toledo, Ohio, had $100,000 in direct costs during 2015. These costs must be allocated to Ruger’s three revenue-producing patient services departments using the direct method. Two cost drivers are under consideration: patient services revenue and hours of housekeeping services used. The patient services departments generated $5 million in total revenues during 2015, and to support these clinical activities, they used 5,000...
A consultancy firm has three operating departments; Tax, Estate Planning and Small Business, and two service...
A consultancy firm has three operating departments; Tax, Estate Planning and Small Business, and two service departments; Internal Accounting and Administrative Services. Only the three operating departments are facing customers. The service departments are offering their services to the operating departments. However, the Administrative Service department is also offering services to the Internal Accounting department. Following information on the five departments: Annual cost ($) Square feet Operating Revenue ($) Tax Estate Planning Small Business Internal Accounting Administrative Services 4,800,000 2,300,000...
Zachary Information Services, Inc., has two service departments: human resources and billing. Zachary's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Legal Services Human Resources 20 $900,000 Number of employees Annual cost* Annual revenue Billing 50 $2,310,000 84 Health Care 208 $ 6,180,000 $...
Rundle Information Services, Inc., has two service departments: human resources and billing. Rundle's operating departments, organized according to the special Industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Health Care Human Resources 20 $ 900,000 Number of employees Annual cost Annual revenue Billing 50 $1,910,000 201 Retail 151 $ 4,910,000 $5,650,000...
Rundle Information Services, Inc., has two service departments: human resources and billing. Rundle's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Number of employees Annual cost Annual revenue Human Resources 20 $900,000 Billing 50 $1,910,000 Health Care 201 $ 6,110,000 $10,100,000 Retail 151 $4,910,000...
Finch Information Services, Inc., has two service departments: human resources and billing. Finch's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Human Resources $900,000 Number of employees Annual cost* Annual revenue 20 Billing 50 $2,710,000 Health Care 195 $6,050,000 $9,500,000 Retail 145 $4,850,000 $5,950,000...
The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two operating departments, Surgery and Outpatient. The hospital uses the direct method to allocate service department costs to operating departments. It allocates Cafeteria costs based on the number of employees. Cafeteria $40,000 20,000 Departmental costs before allocation Number of employees Housekeeping $10,000 15,000 Surgery $140,000 15,000 Outpatient $360,000 45,000 Total $550,000 Knowledge Check 01 How much Cafeteria cost should be allocated to the Surgery department? $6,316 $8,000 $30,000...
A consultancy firm has three operating departments; Tax, Estate Planning and Small Business, and two service departments; Internal Accounting and Administrative Services. Only the three operating departments are facing customers. The service departments are offering their services to the operating departments. However, the Administrative Service department is also offering services to the Internal Accounting department. Following information on the five departments: Annual cost ($) Square feet Operating Revenue ($) Tax Estate Planning Small Business Internal Accounting Administrative Services 4,800,000 2,300,000...
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