Packard Company uses the sequential method. Packard Company allocates Janitorial Department costs based on square footage serviced. It allocates Payroll Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Payroll costs.

It has the following information about its two service departments and two production departments, Cutting and Assembly:

Costs Square Feet Number of

Employees

Janitorial Department $ $450,00010020$

Payroll Department $200,0001,00010$

Cutting Department $1,500,0002,00060$

Assembly Department $3,000,0007,00020$

How much does the Payroll Department allocate to the Cutting Department? Show work!!