St.Paul Medical Clinic has two service departments: Building Operations and Utilities,and three operating departments: Rehabilitation,Preventative Medicine,and Geriatrics.St.Paul Medical Clinic allocates the cost of Building Operations on the basis of square footage and Utilities on the basis of patient days.Fixed and variable costs are not separated.
Budgeted operating data for the previous year are presented below:
| Service Building Operations | Departments Utilities | Operating Rehabilitation | Departments Preventative Medicine | Geriatrics | |
|---|---|---|---|---|---|
| Budgeted costs before allocation | $20,000 | $10,000 | $90,000 | $60,000 | $100,000 |
| Square Footage | 1,000 | 4,000 | 6,000 | 18,000 | 12,000 |
| Patient Days | - | - | 5,500 | 7,700 | 8,800 |
Required:
a. Prepare a schedule to allocate service department costs to operating departments by the chrect method (round all dollar amounts to the ne arest whole dollar).
b. Prepare a schechule to allocate service department costs to operating departments by the step method, allocating Building Operations first (round all amounts to the nearest whole dollar).
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a. Prepare a schedule to allo...
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