Muckenfuss Clinic uses the step-down method to allocate service department costs to operating departments. The...
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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: Service Department Personnel $98,176 Operating Department Family Medicine Geriatric Medicine $ 329,170 $ 146,570 160 231 164 IT $29,800 25 Departmental costs Employees PCs 27 28 26 82 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: Multiple Choice $189,849 $224,888 ooo oo $168,764 $224,886
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