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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: Service
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 | $ 190,000 | $ 60,000 | $ 3,840,000 | $ 330,000 |
Employee-hours | 470 | 340 | 2,700 | 160 |
Space occupiedsquare feet | 700 | 1,200 | 9,600 | 400 |
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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 dollar amount.) |
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