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compute the costs allocated to cost cenetrs #557, 558, 559, 560, and 561 using t

ID: 2705429 • Letter: C

Question

compute the costs allocated to cost cenetrs #557, 558, 559, 560, and 561 using the new allocation bases shown below. Use a worksheet replicating the setup in the table: the new allocation bases are:

Volumes: 120,000- 130,000 - 70,000 - 110,000 - 70,000 - 500,000

Direct costs: $1,100,000- $700,000- $1,300,000 - $1,600,000 - $1,300,000 - $6,000,000

No. of films:  400,000- 20,000 - 55,000 - 25,000 - 20,000 - 520,000

using a worksheet replicating the setup table, enter the new direct cost and the new totals for indirect costs resulting from your work. total the new results.

                                                                                                                

Explanation / Answer

Allocation of Direct Costs (Worksheet 1)



Dept: Radiology