Parat College allocates support department costs to its individual schools using the step method. Information for May 2005 is as follows:

Support departments

Maintenance

Power

Costs incurred

$99,000

$54,000

Service percentages provided to:

Maintenance

10

%

Power

20

%

School of Education

30

%

20

%

School of Technology

50

%

70

%

100

%

100

%

What is the amount of May 2005 support department costs allocated to the School of Education?

  1. $40,500
  2. $42,120
  3. $46,100
  4. $49,125