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Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used i its service department cost allocations:
Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used i its service department cost allocations: Departmental costs before allocations Employee-hours Space occupied-square feet Required: Service Departments Administration Janitorial Operating Departments Groceries $ 200,000 $ 70,000 $3,800,000 Gifts $330,000 470 700 340 2,600 180 1,300 9,300 700 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.) Service Departments Administration Janitorial Operating Departments Groceries Total Gifts Departmental costs before allocations $ 200,000 $ 70,000 $3,800,000 $ 330,000 $ 4,400,000 Allocations Administration costs Janitorial costs Total costs after allocations
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