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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 $200,000 $60,000 470 320 800 1,100 Operating Departments Groceries Gifts $3,840,000 $340,000 2,710 170 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 $ 200,000 $ 60,000 Operating Departments Groceries Gifts $ 3,840,000 $ 340,000 Total 4,440,000 GA Departmental costs before allocations Allocation Administration costs Janitorial costs Total costs after allocation $ 200,000 $ 60,000 $ 3,840,000 $ 340,000 $ 4,440,000
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