(Appendix 4B)Central Medical Clinic Has Two Service Departments-Building Services and Energy-And

Essay

(Appendix 4B)Central Medical Clinic has two Service Departments-Building Services and Energy-and three Operating Departments-Pediatrics,Geriatrics,and Surgery.Central allocates the cost of Building Services on the basis of square metres and Energy on the basis of patient days.Budgeted operating data for the year just completed follow:

Required:

a) Prepare a schedule to allocate Service Department costs to Operating Departments by the direct method, rounding all dollar amounts to the nearest whole dollar.
b) Prepare a schedule to allocate Service Department costs to Operating Departments by the step-down method, allocating Building Services first, and rounding all amounts to the nearest whole dollar.