Question
Chapter 4 Q4 Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in its service department
Chapter 4 Q4 Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in its service department cost allocations: |
Service Departments | Operating Departments | |||
Administration | Janitorial | Groceries | Gifts | |
Departmental costs before allocations | $ 200,000 | $ 60,000 | $ 3,890,000 | $ 340,000 |
Employee-hours | 470 | 350 | 2,700 | 150 |
Space occupiedsquare feet | 800 | 1,400 | 9,200 | 800 |
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Required: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate Administration first on the basis of employee-hours and then Janitorial on the basis of space occupied. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
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