4 Behrend Clinic uses the direct method to ollocote service deportment costs to

Question

4 Behrend Clinic uses the direct method to ollocote service deportment costs to operoting deportments. The clinic hos two service depotmems, Personnel and Support, ond two operating depa rtments, Prenatal and Pedlatrics Departm Employee hours 5pace occupied sonnelSupport 19.31 $42.500 5,000 3,000 $109760 $298.900 1O00 2.000 45,00014,000 6,000 30.000 Personnel Depo closest to: tcosts are allocored totel Pediatrics e allocoted on the bosis of employee hours and S Support Depan In square Department cost oft $303900 $310,046 O $308241 O $310,514

Explanation / Answer

Incremental revenue 6000 =3000*(13-11) Processing costs 11000 Incremental income(loss) -5000 Option1 is correct

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