a. Carol West, the nurse manager of the cystoscopy suite, was given approval to add more space to her current area by converting 500 square feet of administrative space into another cystoscopy bay. What will her new fully allocated expenses be? (Assume that there are no new additional costs incurred by adding the 500 square feet.)
b. Bobbie Jones, the manager of the endoscopy suite, is concerned about adding more space. She contends that if the cystoscopy and endoscopy units were combined, fewer staff would be needed, and direct costs could be reduced by $50,000 ($25,000 in each unit). She also feels that the day-op area is underutilized, and that 500 square feet could be used by a combined unit when excess capacity was needed. Assuming that the 500 square feet were to be allocated equally between the endoscopy and cystoscopy suites, what would the total allocated costs for each of these two services be under this scenario?
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