Answer:
Romain Surgical Hospital
The total Surgery Department cost after service department allocations is closest to:
$ 565,970
Explanation:
a) Data and Calculations:
Service Department Operating Department
Information Technology Administration Surgery Recovery
Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360
Computer workstations 43 20 74 64
Employees 39 25 94 47
Information Technology costs allocated based on the Computer workstations $36,294/138 = $263 per workstation
Administration costs allocated based on the number of employees:
$36,282/141 = $257.32
Direct Allocation of Service Departments' Costs:
Service Department Operating Department
Information Technology Administration Surgery Recovery
Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360
Information Techn. (36,294) 0 19,462 16,832
Administration 0 (36,282) 24,188 12,094
Total costs 0 0 $ 565,970 $ 749,286
