Surf Shop. has two service depts and two operating depts. The company allocates service departmental costs to operating departments using the step-down method. Operating data for these departments for last year are as follows:

Personnel costs are allocated first on the basis of number of employees and Maintenance costs are allocated second on the basis of machine-hours.

Q) What is the total Finishing Department cost after allocation?

Departmental costs Number of employees Machine-hours Service Departments Personnel Maintenance $144,0001 $84,000 351 301 0 0 Operating Departments Cutting Finishing $12,000 $47,400 60 90 2100 150