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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
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 conceming those departments follow: Departmental costs Employees PCs Service Department Personnel IT $85,284 $29,703 11 25 12 26 Operating Department Family Law Corporate Law $883, 360 $ 189,010 121 163 112 137 Personnel costs are allocated first on the basis of employees and IT costs are allocated second on the basis of PCs. In the first step of the allocation, the amount of Personnel Department cost allocated to the Family Law Department is closest to: Multiple Choice O $32.248 O $36,336 O $70,252 $33,396 Actite W
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