The danville manufacturing company has two service

Reference no: EM13610178

The Danville Manufacturing Company has two service departments and two producing departments. The following data are available for 2006. Service Dept. 1 Service Dept. 2 Producing 1 Producing 2 Department Costs $12,000 $8,000 $60,000 $70,000 Number of Transactions 6,000 4,000 6,000 14,000 Square Feet Occupied 2,000 1,000 4,000 6,000 The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied, respectively. Assuming that Danville Manufacturing Company allocates service department 1 costs first, the amount of service department 1 costs allocated to service department 2 under the step-down method would be?

Reference no: EM13610178

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