Practice Problems 19) Dainels Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: Service Department Operating Department General Management Physical Plant Sales After-Sales Departmental costs $36,550 $70,300 $412,500 $492,780 Employee time 5,000 2,000 27,000 14,000 Space occupied 1,000 1,000 38,000 7,000 General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to: General Physical sales after total A) $516,196 management plant soules Departmental costs before allocation B) $515,880 36550 70300 4135CD 492780 1012130 Allocation: C) $503,980 D) $513,911 Physical plant costs ( 1/ 46/ 38/46 / 7/ 46) 1528 (70300) 58074 10698 General management costs ( 27/49 / 14/49) (38078) 25076 13002 Total cost after allocation O 495650 516480 1012130