What is the amount of total costs allocated to sketching

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Reference no: EM133440583

Eagle's Crest Design is an interior design firm that specializes in hotel interior decorating. The design firm consists of two distinct services: Sketching and Installation. There are also support functions for the Eagle's Crest Design that are separated into two departments: Office and Technology Support. Office encompasses all the expenses associated with the office support necessary to run the business. Technology Support includes any expenses associated with the computer systems required to operate the business as well as those used to sketch and install the designs. Cost data for the services and the support functions are as follows:

Technology Support	$21,000
Office	$16,000
Sketching	$46,695
Installation	$60,305
Total	$144,000

The Office and Technology Support costs are allocated based on the service hours. The departments receive the following percentage of service hours from the departments:

Department rendering service	Technology Support	Office	Sketching	Installation
Technology Support	--	15%	45%	40%
Office	40%	--	25%	35%

Technology Support	$21,000
Office	$16,000
Sketching	$46,695
Installation	$60,305
Total	$144,000

The Office and Technology Support costs are allocated based on the service hours. The departments receive the following percentage of service hours from the departments:

Department rendering service	Technology Support	Office	Sketching	Installation
Technology Support	--	15%	45%	40%
Office	40%	--	25%	35%

QUESTION: using the step-down method, where you allocate costs of the tech support department first, what is the amount of total costs (from both service departments) allocated to sketching?

Reference no: EM133440583

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