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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 $190,000 $70,000 470 340 700 1,100 Operating Departments Groceries Gifts $3,830,000 $340,000 2,690 170 9,200 800 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 $ 190,000 $ 70,000 Operating Departments Groceries Gifts Total $ 3,830,000 $ 340,000 $ 4,430,000 Departmental costs before allocations Allocations: Administration costs Janitorial costs Total costs after allocations (190,000) $ 0 70,000 $ 3,830,000 $ 340.000 $ 4,240,000
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