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A business uses the step method to allocate service department costs to the producing departments

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A business uses the step method to allocate service department costs to the producing departments. Assume there are two service departments and two producing departments, as shown below:

           Service Departments                       Producing Departments

                       Maintenance  HR Services                       Cutting             Assembly

Costs                   $60,000              $100,000                     $261,000           $689,000

Machine hours         25,000                6,000                       30,000                   20,000

# of employees             40                     10                               440                        320

Maintenance services costs are allocated based on machine hours usage, and HR services costs are allocated based on the number of employees. The total costs of the assembly department (rounded to the closest $000), after allocating all the service department costs, starting with the largest service provider (ie., HR services) is: