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Lassen Volcanic Inc. has two service departments, Maintenance and Personnel. Maintenance Department costs are allocated on the basis of budgeted maintenance-hours. Personnel Department costs
Lassen Volcanic Inc. has two service departments, Maintenance and Personnel. Maintenance Department costs are allocated on the basis of budgeted maintenance-hours. Personnel Department costs are allocated based on the number of employees. Costs, Maintenance Hours, and the number of employees for both Support and Operating Departments are shown in the table below. Support Departments Budgeted costs Budgeted maintenance-hours Number of employees Operating Departments Maintenance Personnel Y $400,000 $120,000 $186,000 $293,000 NA 780 1200 640 6 NA 28 63 Using the step down method, what is the total amount of Support Department costs that will be allocated to Department X if Personnel Department costs are allocated first? f necessary round final answer to the nearest whole number)
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