Stazenski Children's Clinic Allocates Service Department Costs to Operating Departments

Multiple Choice

Stazenski Children's Clinic allocates service department costs to operating departments using the step-down method.The clinic has two service departments,Administration and Information Technology (IT) ,and two operating departments,Prenatal and Pediatric.Data concerning those departments follow: Administration 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) $435,029
B) $390,920
C) $434,832
D) $423,486