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:

	Service Departments		Operating Departments
	Administration	Janitorial	Groceries	Gifts
Departmental costs before allocations	$ 200,000	$ 70,000	$ 3,880,000	$ 340,000
Employee-hours	450	340	2,680	180
Space occupiedsquare feet	900	1,000	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 allocation

	Service Departments			Operating Departments
	Administration	Janitorial		Groceries	Gifts	Total
Departmental costs before allocations	$200,000	$70,000		$3,880,000	$340,000	$4,490,000
Allocation:
Administration costs
Janitorial costs
Total costs after allocation