Exercise 17-16 Step-Down Method of Service Department Cost Allocation; College (LO 17-1) Hudson 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 45% 30% Sciences 55% 50% The budgeted costs in the two service departments for the year are as follows: Library $1,050,000 Computing Services 510,000 Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences departments. (Do not round intermediate calculations.) Allocation of Computing Service costs Allocation of Library costs Total costs allocated to each department Liberal Arts Sciences $153,000 $255,000 577,500 472,500 $730,500 $727,500