Answer:
The Cystoscopy Department's total expenses are $380,500
Explanation:
According to the given data we have the following:
For Cystoscopy Department,
(A) The Direct Expenses are $350,000
(B) Lab Tests are $500
We should need to calculate the allocation of Utilities for 1500 square feet and then add all these 3 costs.
Total Square feet is 10,000 and Total Expenses for Utilities is $200,000
So per Square foot expense for Utilities = $200,000 / 10,000 = 20 per square foot
(C) So, for Utilities having 1,500 square foot space, the cost allocated = 1,500 X 20 = $30,000
Adding all (A) + (B) + (C), the total expenses for Cystoscopy Department are
$350,000 + $500 + $30,000 = $380,500
The Cystoscopy Department's total expenses are $380,500
