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Allie, Inc. has two service departments and two operating departments. Allie allocates service department costs using...

Allie, Inc. has two service departments and two operating departments. Allie allocates service department costs using the step-down method, with the service department with the highest cost allocated first. Initial cost for service department 1 was $140,000, and for service department 2, $100,000. Service department 1 is allocated on the basis of department employees, while service department 2 is allocated on the basis of square feet. Cost driver usage is as follows:

                        Service 1         Service 2         Operating 1     Operating 2

Employees       50                    10                    20                    40

Square Feet     12,000             16,000             22,000             18,000

What are the total service department costs allocated to Operating 2?

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