Lambert Industries has three service departments: corporate wide advertising; legal; and human resources that are respectively allocated based on revenue, usage, and number of employees. Allocation information regarding all the departments is:

Service Departments Operating Departments

Advertising HR Legal A B C Total

Revenue $3,766,000 $4,635,000 $3,970,000 $12,371,000

Usage of legal Svcs 5% 10% - 10% 30% 45% 100%

Employees 16 22 12 140 175 35 400

Cost before allocation $1,450,000 $1,885,000 $950,000 $2,690,000 $3,434,000 $2,835,000

Using the Step-Down Method, compute the costs allocated to each operating department. Assume human resource costs are allocated to the advertising and legal departments, along with departments A, B and C. Subsequently, legal costs are allocated to advertising and departments A, B & C. Advertising is not allocated to any other service department.