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university of missouri st. louis Operations And Supply Chain Management Assignment Help - the formulas

Question - David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his
indirect expenses. His staff was complaining that the current method of taking a percentage of
revenues was unfair. He decided to try to allocate utilities based on square footage of each
department, administration based on direct costs, and laboratory based on tests. Use the information
in the chart below to answer problems 1'3.
Square Footage Direct Expenses Lab Tests
Utilities $ 200,000
Administration 2,000 500,000
Laboratory 2,000 625,000
Day-op Suite 3,000 1,400,000 4,000
Cystoscopy 1,500 300,000 500
Endoscopy 1,500 600,000 500
Total 10,000 $ 3,375,000 5,000
1.W hat are the Day Op Suite's total expenses?
2.W hat are ...Read More

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