Q.9) A firm has two production departments: Department X and Department Y.

Both production departments are supported by two service departments: Department A (i.e. the power department) and Department B (i.e. the maintenance department). Departments A and B also consume service from one another.

The work done by Departments A and B is summarized in the table below (work by Department A is in kilowatt-hours; work by Department B is in labor hours).

	Work Consumed By
Work Provided By	A	B	X	Y
Department A (Power)	0	100	250	150
Department B (Maintenance)	100	0	80	120

Costs of Department A are $400,000, and costs for Department B are $90,000.

Using the step-down method, what is Department Asallocation to Department Y (round to nearest dollar if necessary)?

(Assume Department Bs costs are allocated to production departments and stepped down to Department A first, before Department As costs are allocated.)