Muckenfuss Clinic uses the step-down method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Information Technology (IT), and two operating departments, Family Medicine and Geriatric Medicine. Data concerning those departments follow:

	Service Department				Operating Department
	Personnel		IT		Family Medicine		Geriatric Medicine
Departmental costs	$	58,750	$	24,725	$	329,050	$	146,450
Employees		15		30		150		195
PCs		16		31		80		140

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 Medicine Department is closest to:

Multiple Choice

• $47,008

• $22,604

• $23,500

• $25,096