Rich Company has a Custodial Services department which services the company's Maintenance department and two operating departments,Machinery and Milling.Costs of Custodial Services are allocated to the other departments on the basis of square footage of space occupied.The amount of space occupied by each department is given below: 
Budgeted costs in Custodial Services amount to $86,400.The amount of Custodial Services cost allocated to Maintenance under the step-down method would be:
Definitions:
Consumer Surplus
The difference between the amount that consumers are willing to pay for a good or service and the actual amount they pay.
Deadweight Loss
The total loss of producer and consumer surplus from underproduction or overproduction.
Underproduction
A situation where the quantity produced of a good or service is less than the socially optimal level, often leading to market failure.
Market Price
The existing cost for acquiring or offloading an asset or service in the marketplace.
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