Auto Mechanics has two support departments (Personnel, Repair) and two operating departments (Machining, Assembly). The table below shows the resource provision by the two support departments to other departments. The total budgeted departmental cost for Personnel department is $200,000 and for Repair department, $500,000. The cost allocation basis for Personnel department is number of employees, whereas the allocation basis for Repair department is floor space (square meters). Using the step-down method of support cost allocation, what is the amount of Personnel cost allocated to the Machining department? Support departments Operating Personnel $200,000 Repair $500,000 Machining Assembly Resource provision Personnel (no. of employees) Repair (square metres) 2. 2 10 6 600 400 900 1000 $125,000 $200,000 $125,216 $177,778