please answer within the format by providing formula the detailed working Please provide answer in text (Without image) Please provide answer in text (Without image) Please provide answer in text (Without image) Kirby 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 $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. Number of Patients Number of Workstations Sewell clinic 6,000 18 Alphretta clinic 4,200 16 Gwinnett clinic 5,800 18 Legal services 8 Computer services 10 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 legal services to the three clinics. Compute the total allocated cost of service centers for each clinic.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 35P: The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two...

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please answer within the format by providing formula the detailed working
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Please provide answer in text (Without image)

Kirby 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 $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.

	Number of Patients	Number of Workstations
Sewell clinic	6,000	18
Alphretta clinic	4,200	16
Gwinnett clinic	5,800	18
Legal services		8
Computer services		10

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 legal services to the three clinics.
Compute the total allocated cost of service centers for each clinic.

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