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What is allocation of dietary costs to neurology department

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Question - The Dietary Department of Phoenix Hospital has direct costs of $550,000. The hospital's four patient services departments utilize the following amounts of space:

Pediatric Department 1,000 square feet

Neurology Department 2,000 square feet

Psychiatry Department 3,000 square feet

Cardiology Department 4,000 square feet

Assuming that the cost driver for dietary costs is the amount of occupied space.

Required - What is the allocation of dietary costs to the Neurology Department?

Reference no: EM133145928

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