Please don't give image format Kirby Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The company's legal services departmentsupports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. Theannual cost of operating the legal services department is $200,000. The annual cost of operating the computer services department is$360,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the numberof computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows.Sewell clinicAlphretta clinicGwinnett clinicLegal servicesComputer servicesNumber ofPatients6,0004,2005,800Number ofWorkstations181618В10Requireda. Allocate the cost of computer services to all of the clinics and the legal services department.b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics.c. Compute the total allocated cost of service centers for each clinic.Complete this question by entering your answers in the tabs below. a. Allocate the cost of computer services to all of the clinics and the legal services department.b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics.c. Compute the total allocated cost of service centers for each clinic.Complete this question by entering your answers in the tabs below.Required A Required BAllocate the cost of computer services to all of the clinics and the legal services department.DepartmentSewell clinicAlphretta clinicGwinnett clinicLegal servicesTotal allocated costShow Transcribed TextDepartmentHequireaa. Allocate the cost of computer services to all of the clinics and the legal services department.b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics.c. Compute the total allocated cost of service centers for each clinic.Sewell clinicAlphretta clinicGwinnett clinicTotal allocated costComplete this question by entering your answers in the tabs below.Required A Required B Required CAfter allocating the cost of computer services, allocate the cost of legal services to the three clinics. (Do not roundintermediate calculations.)Required CShow Transcribed TextAllocated Cost$$Allocated CostRequired A Required BSewell clinicAlphretta clinicGwinnett clinicTotal allocated costRequireda. Allocate the cost of computer services to all of the clinics and the legal services department.b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics.c. Compute the total allocated cost of service centers for each clinic.00Complete this question by entering your answers in the tabs below.$Required CCompute the total allocated cost of service centers for each clinic. (Do not round intermediate calculations.)DepartmentAllocated Cost

Cost allocation refers to the process wherein the business entities identify, agglomerate, and…

Kirby Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $200,000. The annual cost of operating the computer services department is $360,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Sevell clinic Alphretta clinic Gwinnett clinic Legal services Computer services Number of Patients 6,000 4,200 5,800 Number of Workstations 18 16 18 8 10 Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic.

Kirby Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $200,000. The annual cost of operating the computer services department is $360,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Sevell clinic Alphretta clinic Gwinnett clinic Legal services Computer services Number of Patients 6,000 4,200 5,800 Number of Workstations 18 16 18 8 10 Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of service centers for each clinic.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Zachary Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $453,200. The annual cost of operating the computer services department is $345,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. I Sewell clinic Alphretta clinic Gwinnett clinic Legal services Computer services Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics: c. Compute the total allocated cost of…
Thornton Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $331,000. The annual cost of operating the computer services department is $292,600. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Number of Patients:Number of Workstations Sewell clinic 6, 500 : 7 Alphretta clinic 5, 600: 11 Gwinnett clinic 6,300 : 14 Legal services 6 Computer services 18 Required Allocate the cost of computer services to all of the clinics and the legal services department. After allocating the cost of computer services, allocate the cost of…
S Zachary Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $316,050. The annual cost of operating the computer services department is $451,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Number of Patients 6,900 5,300 7,100 Number of Workstations Sewell clinic Alphretta clinic Gwinnett clinic Legal services Computer services Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services…
Stuart Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $339,550. The annual cost of operating the computer services department is $464,800. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Sewell clinic Alphretta clinic Gwinnett clinic. Legal services Computer services Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics. c. Compute the total allocated cost of…
The Vest School of Vocational Technology has organized the school training programs into three departments. Each department provides training in a different area as follows: nursing assistant, dental hygiene, and office technology. The school's owner, Candice Vest, wants to know how much it cost to operate each of the three departments. To accumulate the total cost for each department, the accountant has identified several indirect costs that must be allocated to each. These costs are $10,080 of telephone expense, $2,016 of supplies expense, $720,000 of office rent, $144,000 of janitorial services, and $150,000 of salary paid to the dean of students. To provide a reasonably accurate allocation of costs, the accountant has identified several possible cost drivers. These drivers and their association with each department follow. Cost Driver Department 1 Department 2 Department 3 Number of telephone 28 16 19 Number of faculty members 20 16 12 Square footage of office space 28,000 16,800…
The Housekeeping Department of Micanopy Hospital has direct costs of $500,000. The hospital’s four patient service departments utilize the following amounts of space: Department A = 1,000 square feet Department B = 2,000 square feet Department C = 3,000 square feet Department D = 4,000 square feet Assuming that the cost driver for housekeeping costs is the amount of occupied space, what is the allocation of housekeeping costs to Department A?
The Housekeeping Department of Micanopy Hospital has direct costs of $500,000. The hospital's four patient service departments utilize the following amounts of space:Department A = 1,000 square feetDepartment B = 2,000 square feetDepartment C = 3,000 square feetDepartment D = 4,000 square feet Assuming that the cost driver for housekeeping costs is the amount of occupied space, what is the allocation of housekeeping costs to each department? Show all work. ....typing only
The Housekeeping Services department of Ruger Clinic, a multispecialty practice in Toledo, Ohio, had $100,000 in direct costs during 2007. These costs must be allocated to Ruger’s three revenue-producing patient services departments using the direct method. Two cost drivers are under consideration: patient services revenue and hours of housekeeping services used. The patient services departments generated $5 million in total revenues during 2007, and to support these clinical activities, they used 5,000 hours of housekeeping services. a. What is the value of the cost pool? b. What is the allocation rate if: • patient services revenue is used as the cost driver? • hours of housekeeping services is used as the cost driver?
Patterson Lawn Co. wants to determine the cost of each lawn care maintenance job. The Company has two operating departments, one that performs lawn care services for commercial properties and one that services residential properties. Both operating departments are supported by two service departments, administrative and machine maintenance. Costs for each of these supporting departments are as follows: Administrative Machine Maintenance Total cost $576,000 $3,825,000 The following estimates that are related to the operating departments is as follows: Commercial Residential Total properties properties # of employees 68 60 128 # of customers 225 260 485 # of billable hours 23,000 22,000 45,000 Total overhead cost* $ 525,000 $ 450,000 $ 975,000 *Note that total overhead cost includes costs allocated from service departments and other overhead costs. The Company uses the…
Compton Information Services, Inc., has two service departments: human resources and billing. Compton's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Human Health Legal Resources Billing Care Retail Services Number of employees 10 20 80 60 40 Annual cost* $4,800,000 $6,200,000 $720,000 $1,428,000 $6,000,000 $9,000,000 $2,800,000 $4,800,000 Annual revenue *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company uses the number of employees as the base for allocating human resources department costs and department annual revenue as the base for allocating…
The Science Institute has three departments: Biology, Chemistry, and Physics. The institute's controller wants to estimate the cost of operating each department. He has identified several indirect costs that must be allocated to each department including $52,000 of indirect salaries, $9,000 of office supplies, and $41,000 of office rent. There are 500 students in the biology department, 200 in chemistry and 300 in physics. The director of the Institute wants to know how much of the indirect cost to allocate to each department. Based on this information
Compton Information Services, Inc., has two service departments: human resources and billing. Compton's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Health Legal Services Human Resources Billing Care Retail Number of employees 10 20 80 60 40 Annual cost* $720,000 $1,428,000 $6,000,000 $9,000,000 $4,800,000 $6,200,000 $2,800,000 $4,800,000 Annual revenue *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company uses the number of employees as the base for allocating human resources department costs and department annual revenue as the base for allocating…