Question 4 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 Departm ent Departmental costs Employees PCs Personnel $85,284 11 12 Operating Department Family Corporate IT Law Law $29,703 $883,360 $189,010 25 121 163 26 112 137 Personnel costs are allocated first on the basis of employees and IT costs are allocated second on the basis of PCs. Requirements Assuming the Personnel Department provides the greatest service; determine the costs in the operating departments by the direct, step and reciprocal method of allocation. Direct Method Service Departme nt Operating Departme nt Personnel Total costs after allocation IT Family Corporate Law Law Total