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 |
$ 60,000 |
$ 3,860,000 |
$ 340,000 |
| Employee-hours |
490 |
310 |
2,710 |
180 |
| Space occupied-square feet |
700 |
1,100 |
9,300 |
700 |
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 inter