IC MNA 63130, Fall 2020 Page 17 Problem #3: Service Department Cost Allocations (4 points) Behrend Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating departments, Prenatal and Pediatrics. Service Departments Operating Department Personnel Support Prenatal Pediatrics Departmental costs $29,200 $55,040 $242,050 $423,200 Employee hours 5,000 1,000 26,000 14,000 Space occupied 3,000 2,000 35,000 8,000 Personnel Department costs are allocated on the basis of employee hours and Support Department costs are allocated on the basis of space occupied in square feet. The total Operating and Pediatrics Department cost after the allocations of service department costs is closest to: 8