22. Corallis Corporation uses the step-down method of allocating service department costs to operating departments. Corallis has three service departments (Service 1, 2, and 3) and three operating departments (Operating 1, 2, and 3). This year’s service department costs were as follows: for Service 1, $50,000; for Service 2, $40,000; and for Service 3, $90,000. Service 1 is allocated first, then Service 2, then Service 3. Cost allocation base usage for each department was as follows:

Allocate the service department costs to the operating departments.

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Service 1 Service 2 Service 3 Operating 1 Operating 2 Operating 3 Service 1 base 0% 12% 8% 25% 38% 17% Service 2 base 4% 4% 8% 24% 40% 20% Service 3 base 2.5% 3.75% 6.25% 25% 15% 47.5%