Reddicks 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 Pediatrics. Data concerning those departments follow: Service Departments Operating Department PersonnelIT Family MedicinePediatricsDepartmental costs$86,184$45,995 $608,130$316,290Employees1826 128188PCs1926 125156 Personnel costs are allocated first on the basis of employees and IT costs are allocated second on the basis of PCs. The total Pediatrics Department cost after allocations is closest to:
A. $393,099
B. $383,307
C. $392,838
D. $345,462
Answer: C
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