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Ch 11) Allocations Appendix i Saved Help Save Madision Park Co-op, a grocery and gift shop, has provided the following data to be used in
Ch 11) Allocations Appendix i Saved Help Save Madision Park Co-op, a grocery and gift shop, has provided the following data to be used in its service department cost allocations. Departmental costs before allocations Employee-hours Space occupied in square metres Service Departments Administration Janitorial $ 150,000 $ 40,000 320 160 250 100 Operating Departments Groceries Gifts $2,320,000 $ 950,000 3,100 740 4,000 1,000 Required: Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate the costs of t Administration Department first on the basis of employee-hours and then on the costs of the Janitorial Services Department on the basis of space occupied. (Please enter allocations from a department as negative and allocations to a department as positive. Th line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Service Departments Administration Janitorial $ 150.000 $ 40,000 Operating +artments Groceries Gifts $ 2,320,000 $ 950,000 Total 3,460,000 $ Departmental costs before allocations Allocation Administration costs Janitorial costs Total costs after allocation
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