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Exercise 4B-2 (Algo) Step-Down Method [LO4-11) Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in
Exercise 4B-2 (Algo) Step-Down Method [LO4-11) 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: Departmental costs before allocations Employee-hours Space occupied square feet Service Departments Administration Janitorial $190, eee $50,000 470 340 700 1,800 Operating Departments Groceries Gifts $3,900,000 $350, eee 2,710 150 9,100 900 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 occupled. (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 whole dollar amount.) Service Departments Administration Janitorial $ 190.000 $ 50,000 Operating Departments Groceries Gifts 3,900.000 $ 350.000 Total 4,490,000 S Departmental costs before allocations Allocations: Administration costs Janitorial costs Total costs after allocations $ 190.000 s 50.000 $ 3,900,000 $ 350.000 $ 4,490,000
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