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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 $ 210,000 $ 50,000 490 800 340 1,400 Operating Departments Groceries Gifts $ 3,810,000 $ 330,000 2,700 9,000 160 1,000 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 Departmental costs before allocations Allocations: $ 210,000 $ 50,000 $3,810,000 $ Operating Departments Groceries Total Gifts 330,000 $4,400,000 Administration costs Janitorial costs Total costs after allocations $ 210,000 $ 50,000 $3,810,000 $ 330,000 $4,400,000
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