M Company wishes to allocate the costs of its support departments, Housekeeping (HK) and Maintenance (MN) to its production departments, Machining and Finishing. The following information is provided:

HK MN Machining Finishing Total

Overhead costs $35,000 $20,000 $200,000 $100,000 $355,000

The company plans to use budgeted service hours as the allocation base and provides the following information:

	S e r v i c e s P r o v I d e d T o:
	HK	MN	Machining	Finishing	Total
Service provided by HK		7,000	21,000	7,000	35,000
Service provided by MN	10,000		18,000	12,000	40,000

1. ) If the direct method of allocating support department costs is used, the total service costs allocated to the Finishing Department would be: