Exercise $4$B$-2($Algo$)$ Step$-$Down Method $[$LO$4-11]$Exercise $4$B$-2($Algo$)$ Step$-$Down Method $[$LO$4-11]$

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:

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.$)$

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:

$\backslash$table$[[,$Service Departments,Operating Departments$],[,$Administration,Janitorial,Groceries,Gifts$],[$Departmental costs before allocations,$$200,000,$$$60,000,$$$3,820,000,$$$350,000$