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: Service DepartmentOperating Department PersonnelITFamily MedicineGeriatric MedicineDepartmental costs$66,930$11,678$563,940$82,310Employees 11 27 104 160PCs 11 27 85 87 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. $26,366
D. $23,049
Answer: A
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