Reference no: EM132552826

YaBaDaBaDoo Inc. has two Support Departments and two Operating Departments. Budgeted costs and budgeted activity in the various departments for the most recent year are presented below:

                                    Custodial Services                       Cafeteria                        Cutting Department                        Assembly Department

Overhead Costs                  $229851                           $147132                   $675235                                    $891694

Square Metres of Space Occupied  1661                               2176                     7343                                   10494

Number of Employees                 20                                         30                         150                                   200

Machine Hour              40,000                    60,000

Support Department costs are allocated to Operating Departments with the costs of Custodial Services allocated first on the basis of square metres of space occupied. The costs of the Cafeteria are allocated on the basis of number of employees. Predetermined overhead rates in the Cutting and Assembly departments are based on machine hours. Round all calculations to the nearest dollar.

Question 1: Using the step-down method of allocation, what would be the amount of Custodial's cost allocated to the Assembly Department?