Business, 23.09.2021 06:40 jordantay208

The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two operating departments, Surgery and Outpatient. The hospital uses the direct method to allocate service department costs to operating departments. It allocates Cafeteria costs based on the number of employees. Cafeteria Housekeeping Surgery Outpatient Total
Departmental costs 40,000 10,000 140,000 360,000 550,000
before allocation
Number of employees 20,000 15,000 15,000 45,000
How much Cafeteria cost should be allocated to the Surgery department?

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The California Community Hospital has two service departments, Cafeteria and Housekeeping, and two o...