Exercise 4B-2 (Static) Step-Down Method (LO4-11) 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: Service Departments Operating Departments Adsinistration Janitorial Groceries Gifts Departmental costs before allocations $150,000 $40,000 Employee-hours $2,320,000 $950,000 320 160 3,100 740 Space occupied-square feet 250 100 4,000 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.) Answer is complete but not entirely correct. Service Departments Operating Departments Administration Janitorial CE Groceries Gifts S 160,000 $ 40.000 $ 2,320,000 s 950,000 Total $ 3,460,000 Departmental costs before allocations Allocations Administration costs Janitorial costs Total costs after allocations 150.000 8.000 46,000 92.000 116,250 36,800 $ 2.473,050 27,750 9.200 906,950 $ 3,852,000 300,000