Selva Company has two service departments, Plant Maintenance and Information Systems. Plant Maintenance Department costs of $207,900 are allocated on the basis of budgeted maintenance-hours. Information Systems Department costs of $80,000 are allocated based on the number of employees. The costs of operating departments X and Y are $160,000 and $200,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:

	SUPPORT DEPARTMENTS		OPERATING DEPARTMENTS
Support work	Plant Maintenance	Information Systems	X	Y
Budgeted maintenance-hours		110	280	310
Number of employees	30	40	100	150

a. What are the support work costs of the Plant Maintenance Department per budgeted maintenance-hour using the Step Down Method?

b. What are the support work costs of the Information Systems Department per employee using the Step Down Method?

c. Apply the Step Down Method to allocate the overhead costs of the support departments (Plant Maintenance Department should be allocated first). Enter the data in the table format below:

	SUPPORT DEPARTMENTS		OPERATING DEPARTMENTS
	Plant Maintenance	Information Systems	X	Y	Total
Costs before any inter-department cost allocations
Allocation of Plant Maintenance costs
Allocation of Information Systems costs
Total costs including inter-department cost allocations