Question
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
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.
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