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A hospital has a P100,000 expected utility bill this year. The janitorial, accounting and orderlies departments are service functions to the operating, hospital rooms and laboratories departments.
Floor space assigned to each department is
Department Square Footage
Janitorial 1,000
Accounting 2,000
Orderlies 7,000
Operating 4,000
Hospital Rooms 30,000
Laboratories 6,000
Required:
Question 1: How much of the P100,000 utility bill will eventually become the hospital rooms department total costs, assuming a direct allocation based on square footage is used?
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