Assignment Exercise 6–1: Allocating Indirect Costs

Study Table 6–1, Example of Radiology Departments Direct and Indirect Cost Totals, and Table 6–2, Example of Indirect Costs Allocated to Radiology Departments, and review the chapter text describing how the indirect cost is allocated. This assignment will change the allocation bases: A) Volumes, B) Direct Costs, and C) Number of Films.