(Appendix 4B) Blondell Legal Services, LLC, Uses the Step-Down Method

Multiple Choice

(Appendix 4B) 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:
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 Law Department is closest to:

A) $32,248
B) $70,252
C) $36,336
D) $33,396