EXERCISE 4B - 2 Step - Down Method [ LOT !] University District Co-op , a whole foods grocery and coffee shop , has provided the following data to be used in its service department cost allocations :" Service Departments Operating Departments Building Cotton Administration Services Groceries Shop Departmentall costs before allocations . . . . . . ^ ^ ^ ^ $200. 000 $60.0.00 $3.86.0, 000 $340, 000 Employee- hours. ... . . . " " " 480 320 2, 720 160 Space occupied in square BOO 1. 200 0. 500 500 Required :" Using the step - down method , allocate the costs of the service departments to the two operating departments . Allocate the costs of the Administration Department first on the basis of employee - hours and then the costs of the Building Services Department on the basis of space* occupied