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:

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

Library

Computing Services

$$1,060,000$

$520,000$

Required:

Use the step$-$down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences

departments.

Note: Do not round intermediate calculations.