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problem1. Analyze the following scenario: Jump Hospital currently assigns all maintenance department costs which based on departmental square feet. But, the manager of pharmacy department has recommended that an ABC approach be used for the portion of the maintenance department costs that relate to repairing equipment. Her contention is that the pharmacy has relatively little equipment that breaks. But, it must subsidize many high-tech departments that need expensive equipment repairs. Using the tables below, compute the maintenance cost assigned to the pharmacy using the existing technique and using an ABC approach. Clearly label your calculations in your analysis.

 

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Financial Accounting, Accounting

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