Holmon Surgical Hospital Uses the Direct Method to Allocate Service

question 47

Multiple Choice

Holmon Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Information Technology and Administration, and two operating departments, Surgery and Recovery. Information Technology Department costs are allocated on the basis of computer workstations and Administration Department costs are allocated on the basis of employees.
-The total Surgery Department cost after service department allocations is closest to:

• A) $463,368
• B) $457,933
• C) $470,058
• D) $467,841

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Definitions:

Physicians And Surgeons

Medical professionals who are trained to diagnose and treat illnesses, perform surgical procedures, and manage patient care.

Obstetrics And Gynecology

A medical specialty focused on childbirth and the care of women's reproductive systems throughout their lives.

General Pediatrics

The branch of medicine that deals with the care and development of infants, children, and adolescents.

Orthopedic Surgery

A branch of surgery concerned with conditions involving the musculoskeletal system, requiring operative and non-operative treatment.