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Blondell Legal Services, LLC, uses the step down method to allocate service department costs to operating departments. The firm has two service departments, Personnel and

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Blondell Legal Services, LLC, uses the step down method to allocate service department costs to operating departments. The firm has two service departments, Personnel and Information Technology (IT), and two operating departments, Family Law and Corporate Law. Data concerning those departments follow Service Department Personnel IT $50, 685 $44,725 16 20 Departmental costs Employees Operating Department Family Law Corporate Law $ 357,090 $360, 410 116 182 100 28 Personnel costs are allocated first on the basis of employees and IT costs are allocated second on the basis of PCs. The total Corporate Law Department cost after allocations is closest to

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