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Allocation of Costs - Coursework Example

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By multiplying the labor_hours by the labor_cost per_hour, the total labor_cost is generated. For the maintenance aspect, the total labor_cost…
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Allocation of Costs
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Download file to see previous pages For the pharmacy, the allocation is arrived at using the formula: (200/80,000) x $100,000. The other departments’ share of the $100,000 maintenance supply_costs is: $ 79,800/80,000) x $ 100,000 (Finkler et al., 2013).
Table 3 (Appendix section) shows the allocation of the maintenance_department administration_costs (Finkler et al., 2013). The costs are allocated using the volume of repairs output of Pharmacy department_and resources. The pharmacy department formula is: (3/800)x$15,000. The formula for the other departments’ share of the maintenance_department’s administration_costs was generated using the formula: (797/800)x15,000=$14,977.00 (Epstein, 2011).
Table 5 (appendix section) shows the allocation of the maintenance_department costs (Finkler et al., 2013). The costs are allocated based on the square_feet factor. For example, the maintenance_department’s labor_cost allocated to the pharmacy department was computed using: (2,000/100,000)*192,000.00= ...Download file to see next pagesRead More
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