Deardurff Legal Services, LLC, Uses the Step-Down Method to Allocate

Multiple Choice

Deardurff 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) $417,451
B) $417,540
C) $410,562
D) $394,660