Yellville Regional Hospital Is a Small Hospital with Two Service

Yellville Regional Hospital is a small hospital with two service departments and three revenue areas:
$$\begin{array} { l l r c } \text { Service Department } & \text { Direct Costs } & \text { Square Feet } & \text { Laundry Pounds } \\\text { Housekeeping (HK) } & \$ 80,000 & - & 16,000 \\\text { Laundry } & \$ 132,000 & 500 & \\\text { Revenue Areas: } & & & \\\text { Surgery } & \$ 400,000 & 1,500 & 48,000 \\\text { Semiprivate Rooms } & \$ 200,000 & 2,000 & 24,000 \\\text { Maternity } & \$ 150,000 & 1,000 & 12,000\end{array}$$
The hospital wants to allocate the service department costs to the revenue areas. Housekeeping is allocated based on square footage; Laundry is allocated based on pounds of laundry. The normal capacity for Surgery is 200 hours per month; normal capacity for semiprivate rooms is 600 patient days; and normal capacity for maternity is 200 patient days.
Required:
Determine the overhead rate for the three revenue areas. Allocate the service department costs to the revenue areas using the reciprocal method.