Exam 17: Allocation of Support Activity Costs and Joint Costs

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The Dopler Manufacturing Company has two production departments (Assembly and Finishing) and two service departments (Human Resources and Janitorial). The projected usage of the two service departments is as follows: Use of Human Resources Use of Janitorial Human Resources \@cdots 5\% Janitorial 10\% - Assembly 60\% 40\% Finishing 30\% 55\% The budgeted costs in the service departments are: Human Resources, $90,000 and Janitorial, $50,000. Using the step-down method and assuming the Human Resources Department is allocated first, the total amount of service department cost allocated to the Finishing Department is:

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