Question: Q . Ranft Clinic uses the step - down method to allocate service department costs to operating departments. The clinic has two service departments, Personnel

Q. Ranft Clinic uses the step-down method to allocate service department
Q. Ranft 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 Pediatric. 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 Pediatric Department cost after allocations is closest to:
costs to operating departments. The clinic has two service departments, Personnel and

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