Question: Exercise 4B-2 (Algo) Step-Down Method (L04-11) Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in
Exercise 4B-2 (Algo) Step-Down Method (L04-11) 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: Departmental costs before allocations Inployee-hours space occupied-square feet Service Departments Administration Janitorial $200,000 $60,000 490 340 700 1.300 Operating Departments Groceries Gifts $3,840,000 $330,000 2,690 170 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 intermediate calculations. Round your answers to the nearest whole dollar amount.) Service Departments Administration Janitorial $ 200.000 $ 60.000 Operating Departments Groceries Gifts Total $ 3.840,000 $ 330.0005 4.430,000 Departmental costs before allocations Allocations Administration costs Jantonal costs Total cost ter allocations $ 200,000 $ 60,000 $ 3,840,000 $ 330.000 $ 4.450,000
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