Behrend Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating departments, Prenatal and Pediatrics. Operating Department Prenatal $ 242,050 $ 423,200 26,000 Service Department Personnel Support Pediatrics $ 29,200 $ 55,040 Departmental costs Employee hours Space occupied 5,000 3,000 1,000 2,000 14,000 35,000 8,000 Personnel 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 Pediatrics Department cost after the allocations of service department costs is closest to: Multiple Choice $441,260 $443,660

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
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Behrend Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating
departments, Prenatal and Pediatrics.
Service Department
Operating Department
Personnel
Support
$ 55,040
Prenatal
Pediatrics
$ 29, 200
$ 242,050 $ 423,200
Departmental costs
Employee hours
Space occupied
5,000
1,000
26,000
14,000
3,000
2,000
35,000
8,000
Personnel 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 Pediatrics
Department cost after the allocations of service department costs is closest to:
Multiple Choice
$441,260
$443,660
$433,440
$444,471
Transcribed Image Text:Behrend Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating departments, Prenatal and Pediatrics. Service Department Operating Department Personnel Support $ 55,040 Prenatal Pediatrics $ 29, 200 $ 242,050 $ 423,200 Departmental costs Employee hours Space occupied 5,000 1,000 26,000 14,000 3,000 2,000 35,000 8,000 Personnel 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 Pediatrics Department cost after the allocations of service department costs is closest to: Multiple Choice $441,260 $443,660 $433,440 $444,471
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