(Appendix 4B) Muckenfuss Clinic Uses the Step-Down Method to Allocate

question 29

Multiple Choice

(Appendix 4B) 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:
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 Medicine Department is closest to:

• A) $23,920
• B) $58,405
• C) $23,049
• D) $26,366

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Definitions:

Proportion of Employees

The ratio or percentage of a particular group of employees within a larger population or organization.

Participation

Involvement or engagement in an activity, process, or event by contributing effort, opinions, or resources.

Ancient Greeks

A civilization belonging to a period of Greek history that lasted from the Archaic period of the 8th century BC to the end of antiquity.

Night Sky

the appearance of the sky during the night, characterized by visible celestial bodies such as stars, planets, and the moon.