Bay State Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments output for the year is as follows:

	Provider of Service
User of Service	Library			Computing Services
Library					20	%
Computing Services
Liberal Arts		80	%		30	%
Sciences		20	%		50	%

The budgeted costs in the two service departments for the year are as follows:

Library	$	940,000
Computing Services		400,000

Required:

1.	Use the step-down method to allocate Bay State Community Colleges service department costs to the Liberal Arts and Sciences departments. (Do not round intermediate calculations.)

Allocation of Computing Service costs

Allocation of Libary Costs

Total Costs Allocated to Each Department