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Question 4

	Support departments		Operating departments
	support dept #1	support dept #2	operating #1	operating #2	total
departmental costs	$ 90,000.00	$ 60,000.00	$ 700,000.00	$ 300,000.00	$ 1,150,000.00
support work furnished:
by support dept#1-- salaries		40,000	110,000	50,000	200,000
by support dept#2-- # of people	3		4	2	9

The accountant for Fio, Inc. is preparing the budgets for operating department support service costs. Support Department #1 cost are allocated based on salaries, and support department #2 are allocated based on number of employees. The data above has been collected.

If the step-down method is used and support Department #1 is allocated first, what is the total amount of Support Department #2 cost to be allocated to other departments? _____________________________.

You must show your computation (NOT ON SCRAP PAPER) in order to receive credit.