I am confused as to where I need to begin to prepare the cost allocation desired by the hospital adm
I am confused as to where I need to begin to prepare the cost allocation desired by the hospital administrator. This problem 4B-6 requires to use the step-down methodand wants me to include under each billing center the direct costs of the center, as well as the costs allocated from the service departments.
It lists Services Departments with Housekeeping Services, Food Services and Admin. Services. The Operating Departments are Laboratory, Radiology and General Hospital.Of these they include Meals served, percentage of peak-period needs for Food Services, Square feet of space, files processed and Percentage of peak-periodneeds–Admin. Services. I don't know how to set up the cost allocation. Please help!
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