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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 Departmental
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 Service Departments Administration Janitorial $210,000 $70,000 480 320 600 1,300 Operating Departments Groceries oifts $3,850,000 5330,000 2,730 150 9,000 1,000 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.) Service Departments Administration Janitorial $ 210.000 $ 70.000 Operating Departments Groceries Gifts Total $ 3.850,000 $ 330.000 $4.460.000 Departmental costs before allocations Allocations Administration costs Janitorial costs Total costs after allocations (210.000) $ 0 $ 70.000 $ 3,850,000 $ 330.000 $4250.000
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