Konosh Medical Clinic has two service departments,Building Services and Energy,and three operating departments,Pediatrics,Geriatrics,and Surgery.Konosh 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: Required:
a.Prepare a schedule to allocate service department costs to operating departments by the direct method.(Round all dollar amounts to the nearest whole dollar. )
b.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. )

Question

Konosh Medical Clinic has two service departments,Building Services and Energy,and three operating departments,Pediatrics,Geriatrics,and Surgery.Konosh 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:  Required:
a.Prepare a schedule to allocate service department costs to operating departments by the direct method.(Round all dollar amounts to the nearest whole dollar. )
b.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. )

Quizplus · Accepted Answer

The Answer of Konosh Medical Clinic has two service departments,Building Services and Energy,and three operating departments,Pediatrics,Geriatrics,and Surgery.Konosh 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:  Required:
a.Prepare a schedule to allocate service department costs to operating departments by the direct method.(Round all dollar amounts to the nearest whole dollar. )
b.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. )

Konosh Medical Clinic Has Two Service Departments,Building Services and Energy,and