President Clinic has two service departments, Administrative and Support, and two operating departments, Adult Medicine and Pediatrics. The clinic uses the direct method to allocate service department costs to operating departments. Administrative Department costs are allocated on the basis of employee hours and Support Department costs are allocated on the basis of space occupied in square feet.
-The total amount of Information Technology Department cost allocated to the two operating departments is closest to:

Question

President Clinic has two service departments, Administrative and Support, and two operating departments, Adult Medicine and Pediatrics.  The clinic uses the direct method to allocate service department costs to operating departments. Administrative Department costs are allocated on the basis of employee hours and Support Department costs are allocated on the basis of space occupied in square feet.
-The total amount of Information Technology Department cost allocated to the two operating departments is closest to:

Quizplus · Accepted Answer

Information Technology costs to be allocated = $30,820

President Clinic Has Two Service Departments, Administrative and Support, and Two