Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Information Technology and Administration, and two operating departments, Surgery and Recovery. Service Department Operating Department Information TechnologyAdministration SurgeryRecoveryDepartmental costs$25,956$36,356 $563,640$588,200Computer workstations2017 5430Employees1513 9527? ?Information Technology Department costs are allocated on the basis of computer workstations and Administration Department costs are allocated on the basis of employees.? ?The total amount of Information Technology Department cost allocated to the two operating departments is closest to:
A. $109,015
B. $25,956
C. $18,019
D. $21,587
Answer: B
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