Deardurff Legal Services, LLC, Uses the Step-Down Method to Allocate

question 21

Multiple Choice

Deardurff 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.
-The total Corporate Law Department cost after allocations is closest to:

• A)$417,451
• B)$417,540
• C)$410,562
• D)$394,660

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Definitions:

Internet

A global network of computers that allows for the sharing of information and communication across vast distances instantly.

Job-seekers

Individuals actively looking for employment opportunities.

Flowering Plants

are plants that produce flowers as their reproductive structures, where seeds are developed.

Petals

The colored parts of a flower that are often bright and noticeable, serving to attract pollinators.