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Black Ash Eye and Throat Hospital allocates service department costs to operating departments using the step-down method. The hospital has two service departments, A and

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Black Ash Eye and Throat Hospital allocates service department costs to operating departments using the step-down method. The hospital has two service departments, A and Information Technology and two operating Eye and Throat. concerning those departments follow: Administration costs are allocated first on the basis of employees and IT costs are allocated second on the basis of Work Stations. The total Throat Department cost after allocations is closest to: A. $ 266, 550 B. $ 267, 800 C. $ 307, 500 D. $ 308.750 E. None of the above

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