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The managers of company X are discussing ways to allocate the costs of support d...
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The managers of company X are discussing ways to allocate the costs of support departments (Support Department IT and Support Department HR) to production departments (Operating Department A and Operating Department B). The following information is available:
| IT | HR | Department A | Department B | |
| Costs | $365460 | $218314 | $400070 | $251271 |
| Services provided by IT | 14000 | 42000 | 14000 | |
| Services provided by HR | 20000 | 40000 | 30000 |
If Company X uses the step down method of allocating support department costs (beginning with Support Department IT), the support department HR costs allocated to the Operating Department A are:
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