Bramble's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $266500, $148800, and $63200, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct O $0. O $15571. O $16341. Q$17059. 16 8 Admin 20 HR 48 8 Surgery ER 360 220 80 120 65 130 What amount of costs would be allocated from the administrative department to the other support departments (Acct and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.)

Bramble's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $266500, $148800, and $63200, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct O $0. O $15571. O $16341. Q$17059. 16 8 Admin 20 HR 48 8 Surgery ER 360 220 80 120 65 130 What amount of costs would be allocated from the administrative department to the other support departments (Acct and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
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