The New Administrator For The Surgical Clinic, Was Trying To Figure

Cost allocation. Use the information in Exhibit 12.11 to answer these questions.Louis Clark, the new administrator for the surgical clinic, was trying to figure out how to allocate his indirect expenses. His staff were complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities expense based on square footage for each department, to allocate administration expense based on direct costs, and to allocate laboratory expense based on tests. What would the results be?

Originally posted 2018-07-13 23:55:17. Republished by Blog Post Promoter

the new administrator for the surgical clinic, was trying to figure

Question
Cost allocation. Use the information in Exhibit 12.11 to answer these questions.

Louis Clark, the new administrator for the surgical clinic, was trying to figure out how to allocate his indirect expenses. His staff were complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities expense based on square footage for each department, to allocate administration expense based on direct costs, and to allocate laboratory expense based on tests. What would the results be?