1. Rad and Drink, a bookstore and coffee shop has provided the following data to be used in its service department cost allocations: e t L Service Department Administration Cleaning Book Store Departmental Cost $300,000 $80,000 $4,640,000 Operating Department Coffee Shop $1,900,000 before allocation Employee Hours 640 320 6,200 1,480 Space Occupied in 500 100 4,000 1,000 Sq. Meters Required: Using the step down method, allocate the cost of the service departments to the operating departments. Allocate the cost of the administration department first on the basis of employee hours and then on the cost of the cleaning services department on the basis of the space occupied.