Woodbury Hospital has three service departments and three operating departments. Estimated cost and operating data for all departments in the hospital for the forthcoming quarter arc presented in the table below:The costs of the service departments are allocated by the step-down method using the allocation bases and in the order shown in the following table:All billing in the hospital is done through Laboratory, Radiology, or General Hospital. The hospital’s administrator wants the costs of the three service departments allocated to these three billing centers.Required:Prepare the cost allocation desired by the hospital administrator. (Use the step-down method.) Include under each billing center the direct costs of the center, as well as the costs allocated from the servicedepartments.
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