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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 66 128 720 1,960
Legal Advice 41 36 1,000 2,360
Clerical 36 36 560 1,760
Janitorial 21 36 360 1,160

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

Clerical Janitorial
Variable Costs $13,600 $5,800
Fixed Costs $ 10,000 $2,400

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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