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Madison Park Co-op, a grocery and gift shop, has provided the following data to be used in its service department cost allocations Departmental coats before
Madison Park Co-op, a grocery and gift shop, has provided the following data to be used in its service department cost allocations Departmental coats before allocations Employee-hours Space occupied in square metres Service Departments Administration Janitorial $ 150,000 $ 40,000 320 160 100 Operating Departments Groceries Gift $2,320,000 $950,000 3,100 4,000 740 250 Required: Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate the costs of the Administration Department first on the basis of employee-hours and then on the costs of the Janitorial Services Department 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 dollar amount.) Total Operating Service Departments Departments Administratidanitorial Groceries Gifts Departmental costs before leme 2ml S $ 150,000 legs $40.000 2.320.000 $ 950,000 allocations Allocation: Administraton costs Janitonal costs Total costs after allocation 3.460.000
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