Sarasota Manufacturing produces wooden outdoor furniture. Sarasota uses the step-down method to allocate service department costs to the production departments. There are two service departments: administration and custodial services, and two production departments: cutting and assembly. Allocates administration costs first followed by custodial services costs. Administration costs are allocated based on labour hours, and custodial services costs are allocated based on space occupied.

						Production Departments
		Administration		Custodial Services			Cutting		Assembly
Direct costs		$ 147,900		$ 91,000			$ 329,400		$ 745,800
Labour hours		12,300		9,000			27,300		47,400
Space occupied (m2)		5,200		5,200			21,040		28,950
# units produced							51,300		85,500

Allocate the custodial services costs to the production departments.

	Production Departments
		Cutting		Assembly
Allocation of custodial services costs		$		$