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The Jason Manufacturing Company has two production departments (millwright and assembly) and three service departments (general factory administration, factory maintenance, and factory development). A summary

The Jason Manufacturing Company has two production departments (millwright and assembly) and three service departments (general factory administration, factory maintenance, and factory development). A summary of costs and other data for each department, prior to allocation of service department costs for the year ended March 30, appears below.

The costs of the general factory administration department, factory maintenance department, and factory development are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively.

Millwright

Assembly

General

Factory

Admin.

Factory

Maint.

Factory

Devel.

Direct labor costs:

$1,950,000

$2,050,000

Direct material costs:

$3,130,000

$ 950,000

Factory overhead costs:

$1,975,000

$2,510,000

$95,000

$87,000

$65,000

Direct labor hours:

235,980

376,180

Number of employees:

210

255

51

84

30

Sq. footage occupied:

10,000

40,000

2,500

2,300

5,200

Assuming that Jason elects to use the sequential method to distribute service department costs (starting with factory development), what would be the amount of factory development that would be allocated to the factory maintenance department?

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