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A clinic uses the step-down method to allocate service department costs to operating depts. The clinic has two service departments, Personnel and IT and two
A clinic uses the step-down method to allocate service department costs to operating depts. The clinic has two service departments, Personnel and IT and two operating depts, Family Medicine and Pediatrics. Personnel costs are allocated first on the basis of employees and IT costs are allocated second on the basis of PCs. The total pediatrics dept cost after allocations is closest to which value?
Service Dept Operating Dept
Dept CostsPersonnel ITFamily MedPediatrics
$85,728 $21,598 $490,480$162,640
Employees1423106175
PCs162566172
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