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 ManagementPhysical Plant SalesAfter-SalesDepartmental costs$36,550$70,300 $412,500$492,780Employee time5,0002,000 27,00014,000Space occupied1,0001,000 38,0007,000 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:
A. $503,980
B. $515,880
C. $516,196
D. $513,911
Answer: B
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