Zoopsia Hospital Has Two Service Departments and Three Operating Departments

question 46

Multiple Choice

Zoopsia Hospital has two service departments and three operating departments. Selected information on the five departments for last year is as follows: Zoopsia allocates Power Generation cost first on the basis of kilowatt hours. Zoopsia then allocates Laundry cost on the basis of the number of employees. Operating costs in Power Generation for last year were $250,000. Operating costs in Laundry for last year were $60,000. No distinction is made between variable and fixed costs.
-If service department costs are allocated using the step-down method, what is the total amount of service cost that will be allocated to Maternity?

• A) $66,425
• B) $73,000
• C) $84,500
• D) $88,000

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Definitions:

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels.

Vasculature

The arrangement or system of blood vessels in an organism.

Performance-Related

Pertaining to outcomes or rewards that are directly linked to the effectiveness or excellence of an individual's work or performance.

Agility

The ability to move quickly and easily, often referenced in both physical and mental contexts to describe flexibility and adaptiveness.