Black Ash Eye and Throat Hospital allocates service departmen method. The hospit

Question

Black Ash Eye and Throat Hospital allocates service departmen method. The hospital has two service departments, Administration and Information Tec operating departments, Eye and Throat. Data concerning those departments follow t costs to operating departments using the step-down hnology (IT), and two Service Department Operating Department 500,600|$ Admin. IT 65,000 60 30 Throat 350,000 Departmental costs |$ # of Employees | Work Stations 80,000|$ 15 20 150 90 40| ?' -- Administration costs are allocated first on the basis of employees and IT costs are allocated second on the basis of Work Stations. After allocation, the Eye Department found out that their total departmental cost is $567,600. How many work stations does the Throat Department have? A. B. C. D. I 113 work stations 60 work stations 80 work stations 24 work stations E. None of the above

Explanation / Answer

X=80

No of Workstation =80

Admin IT Eye Threat Departmental Cost 80000 65000 500600 350000 Allocated Admin Based on No of Employees 60:150:90 -80000 16000 40000 24000 Allocated IT cost Based on No Work Station 40:X -81000 81000*40/(40+X) 81000/(40+X)*X Total Cost After Allocation 0 0 567600 Not Requred to Calculate

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