Question: support dept #1 support dept #2 operating #1 operating #2 total departmental costs $ 90,000.00 $ 60,000.00 $ 700,000.00 $ 300,000.00 $ 1,150,000.00 support work

support dept #1 support dept #2 operating #1 operating #2 total
departmental costs $ 90,000.00 $ 60,000.00 $ 700,000.00 $ 300,000.00 $ 1,150,000.00
support work furnished:
by support dept#1-- salaries 40,000 110,000 50,000 200,000
by support dept#2-- # of people 3 4 2 9

The accountant for Fio, Inc. is preparing the budgets for operating department support service costs. Support Department #1 cost are allocated based on salaries, and support department #2 are allocated based on number of employees. The data above has been collected.

If the step-down method is used and support Department #1 is allocated first, what is the total amount of Support Department #2 cost to be allocated to other departments? _____________________________.

You must show your computation (NOT ON SCRAP PAPER) in order to receive credit.

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