The direct method is used by Marrero Publishing,Inc.,to allocate service department costs to operating departments.The company has two service departments,Information Technology and Personnel,and two operating departments,Prepress and Printing. 
Information Technology Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees.The total Prepress Department cost after service department allocations is closest to:
Definitions:
Activity-Based Costing
A costing method that assigns costs to products and services based on the activities they require.
Direct Labor-Hours
Cumulative working time of employees who are directly engaged in producing goods.
Direct Materials Cost
The cost of raw materials that can be directly traced to the production of goods.
Activity-Based Costing
An accounting method that assigns costs to products and services based on the activities required to produce them.
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