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Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments....

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Accounting

Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Information Technology and Administration, and two operating departments, Surgery and Recovery.

Service Department Operating Department
Information Technology Administration Surgery Recovery
Departmental costs $33,912 $35,157 $503,570 $701,610
Computer workstations 28 25 59 49
Employees 24 10 90 45

Information Technology Department costs are allocated on the basis of computer workstations and Administration Department costs are allocated on the basis of employees.

The total Surgery Department cost after service department allocations is closest to:

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