(Appendix 4B) Muckenfuss Clinic Uses the Step-Down Method to Allocate

Multiple Choice

(Appendix 4B) 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:
Personnel costs are allocated first on the basis of employees and IT costs are allocated second on the basis of PCs.
-The total Geriatric Medicine Department cost after allocations is closest to:

A) $122,608
B) $128,781
C) $128,158
D) $91,358