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Slewah Corporation has two main production departments, Cameras and Batteries. The company also has two service departments, the Human Resources department and the Information Technology

Slewah Corporation has two main production departments, Cameras and Batteries. The company also has two service departments, the Human Resources department and the Information Technology department. The budgeted costs in the two service departments, Human Resources and Information Technology, are £550,000 and £350,000 respectively. Slewah Corporation allocates the costs of the Human Resources department first when using the step-down method. The usage of these two service departments’ output for the year is as follows:


Provider of Service

User of Service


Human Resources

Information Technology

Human Resources

__

50%

Information Technology

20%

__

Cameras

40%

30%

Batteries

40%

20%


If Slewah Corporation uses the direct method to allocate the budgeted costs of the Information Technology department, what would be the budgeted cost allocated to the Cameras department?

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