JKL Mfg. cans food products. JKL has 2 production departments (Canning and Labelling) and 2 service departments (Maintenance and Cleaning). Maintenance costs are allocated based on machine hours used. Cleaning costs are allocated based on square feet of floor space. JKL also allocates depreciation on the factory equipment to all departments on the basis of number of employee positions in the department. The following data is available for JKL:
Canning: 2,000 square feet of floor space, 300 machine hours used, 10 employees
Labelling: 1,000 square feet of floor space, 100 machine hours used, 5 employees
Maintenance: $600 incurred, 1 employee
Cleaning: $2,000 incurred, 4 employees
Depreciation on factory equipment: $500
How much in total costs should be allocated to the Labelling department? (Round to the nearest dollar.)
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