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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
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 $70,000 $3,820,000 $350,000 Employee-hours 490 330 2,720 150 Space occupied-square feet 1,000 1,300 9,500 500 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 whole dollar amount.) "Using the step-down met Service Departments Operating Departments Administration Janitorial Groceries Gifts Total Departmental costs before $ 200,000 $ 70,000 $ $ allocations 3,820,000 $ 350,000 4.440,000 Allocation: Administration costs (200,000) 256,200 Janitorial costs (70,000) $ $ Total costs after allocation 0 $ 0 $ 4,076,200 $ 350,000 4,426,200 departments. Allocate Adminastration first on the basis of employee-hours and then Janitorial on the basis of space occupied
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