The Mohawk-Hudson Company is an electric utility which has two service departments, Accounting and Maintenance. It has two operating departments, Generation and Transmission. The company does not distinguish between fixed and variable service department costs. Maintenance Department costs are allocated on the basis of maintenance hours of service. Accounting Department costs are allocated to operating departments on the basis of accounting hours of service provided. Budgeted costs and other data for the coming year are as follows:

Accounting Maintenance Generation

Transmission

$400,000 4,800 3,500

Budgeted costs Maintenance hours of service Accounting hours of service

$100,000 $200,000 200 400 500 2,000

$600,000 7,200 4,500

The step method is used to allocate service department costs, with the accounting department being allocated first.

Required:

Determine the total costs allocated to each operating department using the step-down method. Show all calculations,