Ockey Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Information Technology and Personnel, and two operating departments, Fabrication and Customization. Service Department Operating Department Information TechnologyPersonnel FabricationCustomizationDepartmental costs$26,880$21,525 $251,210$447,000Computer workstations3718 4337Employees3413 7332? ?Information Technology Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees.? ?The total Fabrication Department cost after service department allocations is closest to:
A. $270,110
B. $274,308
C. $280,623
D. $277,969
Answer: C
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