Eye Medical Clinic - schedule to allocate service department costs
dental doctorEye Medical Clinic has two service departments, Building Services and Energy, and three operating departments, Pediatrics, Geriatrics, and Surgery. Eye Medical allocates the cost of Building Services on square footage and Energy on patient days. No distinction is made between variable and fixed costs. Budgeted operating data for last year follow:
|
| Service Departments |
| Operating Departments | |||
|
| Building Services | Energy |
| Pediatrics | Geriatrics | Surgery |
| Budgeted costs before allocation.................................................................................... | $18,000 | $8,000 |
| $80,000 | $50,000 | $90,000 |
| Square footage....................................................................................... | 1,000 | 4,000 |
| 6,000 | 18,000 | 12,000 |
| Patient days............................................................................................ | -- | -- |
| 5,500 | 7,700 | 8,800 |
Required: Prepare a schedule to allocate service department costs to operating
departments by the step-down method, allocating Building Services first.
(Round all dollar amounts to the nearest whole dollar.)
11 years ago
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eye_medical_clinic_-_schedule_to_allocate_service_department_costs.docx
