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Chapter 4 .png


I need help resolving these 4

problems. I don't need the answers but also how to get each answer.

Chapter 4 .png

1? Purchasing 30,000
:3; Administration 40.000 i5 -
'3‘ Mission
Soup Kitchens 900.000 40 90
Counseling 300,000 g __5 .
Total Cost “3205300 fl :3 CHAPTER 4 Understanding Costs 16‘! 4-53. Use the information in the table on the previous page 4-56. Jump Hospital currently allocates all maintenance
to allocate costs to the mission centers using the department costs based on departmental square feet.
direct distribution method. However, the manager of the pharmacy department has suggested that an ABC approach he used for the portion of the maintenance department costs that
relate to repairing equipment. Her contention is that
the pharmacy has relatively little equipment that 4-54. Using the information from Problem 4-53, allocate
the costs using the stepndown method. Compare the
results with Problem 4—53. Do theyr differ? 4-55. Using the information from Problem 4-54, allocate breaks. However, it must subsidize many high-tech
the costs using the step-down method, but change the departments that require expensive equipment repairs.
order of step-down from that used when you solved Using the data in the following tables, calculate the
Problem 4-54. Do your results differ from those you maintenance COSt assigned to the pharmacy using the found in Problem 4-54? existing method and using an ABC approach.

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