Reference no: EM132552846

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?