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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:
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 Required: Service Departments Administration Janitorial $ 200,000 $ 70,000 460 600 310 1,300 Operating Departments Groceries Gifts $ 3,810,000 $ 330,000 2,750 9,400 140 600 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.) Departmental costs before allocations Allocations: Administration costs Service Departments Administration Janitorial Operating Departments Groceries Total Gifts $ 200,000 $ 70,000 $ 3,810,000 $ 330,000 $ 4,410,000 Janitorial costs Total costs after allocations $ 200,000 $ 70,000 $ 3,810,000 $ 330,000 $ 4,410,000
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