Cervetti, Incorporated, allocates service department costs to operating departments using the step-down method. The company has two service departments, Administration and Physical Plant, and two operating departments, Assembly and Testing. Data concerning those departments follow: Service Department Physical Operating Department Departmental costs Employee time Space occupied Administration $ 26,220 4,000 9,000 Plant $ 78,860 1,000 1,000 Assembly $ 127,160 25,000 37,000 Testing $ 737,860 12,000 6,000 Administration Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupled. The total Testing Department cost after allocations is closest to: Multiple Choice $754 279 $754,279 $757,240 $748,960 O $757,368