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A firm has two service departments (A and B) and two production departments (X and Y). The firm allocates service department cost using the step-down
A firm has two service departments (A and B) and two production departments (X and Y). The firm allocates service department cost using the step-down method. In the step-down process, Department A is first and Department B is second.
Service Department A's services are consumed as follows.
- 30% used by Service Department B.
- 35% used by Production Department X.
- 35% used by Production Department Y.
If Service Department A has $948,550 costs for the period, how much of those costs is allocated to Department X (round final answer to nearest cent if necessary)?
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