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

Multiple Choice

Diprima 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 Pediatric.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 Pediatric Department cost after allocations is closest to:

A) $233,732
B) $238,715
C) $238,298
D) $205,318