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Harry Dishman owns and operates Harry's Septic Service and Legal Advice. Harry's two revenue generating (production) operations are supported by two service departments: Clerical and

Harry Dishman owns and operates Harry's Septic Service and Legal Advice. Harry's two revenue generating (production) operations are supported by two service departments: Clerical and Janitorial. Costs in the service departments are allocated in the following order using the designated allocation bases:

Clerical:

Variable cost: expected number of work orders processed

Fixed cost: long-run average number of work orders processed

Janitorial:

Variable cost: labor hours

Fixed cost: square footage of space occupied

Average and expected activity levels for next month (June) are as follows:

No.of Work Labor Square
Orders Expected Average Hours Footage
Septic Service 69 137 750 1,990
Legal Advice 44 39 1,030 2,390
Clerical 39 39 590 1,790
Janitorial 24 39 390 1,190

Expected costs in the service departments for June are as follows:

Clerical Janitorial
Variable Costs $13,900 $6,100
Fixed Costs $ 10,300 $2,700

Under the step method of allocation, how much Clerical service cost should be allocated to the Septic Service operation for June? (Assume Clerical costs are allocated before Janitorial costs and round all calculations to the nearest whole dollar.)

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