Personnel $85,284 11 12
IT $29,703 25 26
Operating Department Family Corporate Law Law $883,360 $189,010 121 163 112 137
Personnel costs are allocated first on the basis of employees and IT costs are allocated second on the basis of PCs. Requirements Assuming the Personnel Department provides the greatest service; determine the costs in the operating departments by the step method of allocation. Assuming the Personnel Department provides the greatest service; determine the costs in the operating departments by the direct, step and reciprocal method of allocation. Direct Method Service Department Operating Department Personnel IT Family Law Corporate Law
Total
Service Department Operating Department Personnel IT Family Law Corporate Law
Total costs after allocation Step Method Total costs after allocation Reciprocal Method Total costs after allocation
