(Appendix 4B) Blondell Legal Services, LLC, Uses the Step-Down Method

question 25

Multiple Choice

(Appendix 4B) Blondell 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) $32,248
• B) $70,252
• C) $36,336
• D) $33,396

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Definitions:

Legal Families

Groups of individuals related by blood, marriage, or adoption and recognized as such by law.

Social Convoy

A theory stressing the importance of social relationships that individuals accumulate over their lives, acting as a protective and supportive network.

Coworkers

Individuals who work together in the same organization or workplace.

Industrial Revolution

A period of major industrialization from the 18th to the 19th century that radically transformed society with technological advancements, changing the manual labor system into machine-based manufacturing.