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Business, 05.06.2020 04:57 michaelwarren8728

David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer the question. Square FootageDirect ExpensesLab Tests
Utilities 200,000
Administration2,000500,000
Laboratory2,000625,000
Day-op Suite3,0001,400,0004,000
Cystoscopy1,500350,000500
Endoscopy1,500300,000500
Total10,0003,375,0005,000
Based on the scenario above, what are the Cystoscopy Department's total expenses?

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