Current Attempt in ProgressBlue Spruce's Medical operates three support departments and two operating units, Surgery and ER. The support departments areallocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR)departments is $267800, $150600, and $71600, respectively. Information on the hours used are as follows:Hours in AcctHours in AdminHours in HRAcct$0.$276955.$274542.$251890.168Admin204HR488Surgery ER3602201206580130What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediatecalculations.)

Allocation of cost refers to the process of distributing or assigning various expenses or…

Answered: What are the total costs allocated to…

What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediate calculations.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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Blue Spruce's Medical operates three support departments and two operating units, Surgery and ER. The support departments are
allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR)
departments is $267800, $150600, and $71600, respectively. Information on the hours used are as follows:
Hours in Acct
Hours in Admin
Hours in HR
Acct
$0.
$276955.
$274542.
$251890.
16
8
Admin
20
4
HR
48
8
Surgery ER
360
220
120
65
80
130
What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediate
calculations.)

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