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

Multiple Choice

Finkler 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.
-In the first step of the allocation, the amount of Personnel Department cost allocated to the Family Law Department is closest to:

A) $30,752
B) $32,837
C) $45,636
D) $29,177