Reddicks Clinic Uses the Step-Down Method to Allocate Service Department

Multiple Choice

Reddicks 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 Pediatrics.Data concerning those departments follow:
Personnel costs are allocated first on the basis of employees and IT costs are allocated second on the basis of PCs.The total Pediatrics Department cost after allocations is closest to:

A) $345,462
B) $393,099
C) $392,838
D) $383,307