(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.
-The total Corporate Law Department cost after allocations is closest to:

A) $254,137
B) $246,630
C) $254,301
D) $209,149