Dr. Lisa is evaluating her dental practice with her colleague, Dr. Jason. Dr. Lisa provides general dental services, while Dr. Jason provides orthodontic care. They utilize shared business services (including human resources, billing, and purchasing) as well as shared maintenance services. Here is a summary of their costs and usages, where business services are allocated based on hours on task and maintenance costs are allocated based on square feet of space.
| Department | Business Services | Maintenance | Dental | Orthodontics |
|------------|-------------------|------------|--------|--------------|
| Original cost | $106,000 | $54,000 | $527,000 | $378,000 |
Allocate the support department costs using the reciprocal method in Excel (you may check the reasonableness of each total support department cost estimate by solving by hand). (Round answers to 2 decimal places, e.g. 15.25.
Support Department
- Business Services
- Maintenance