Madison park co-op a whole foods grocery and gift shop has

Reference no: EM13589939

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	$ 50,000	$ 3,850,000	$ 330,000
Employee-hours	470	330	2,720	150
Space occupied-square feet	900	1,100	9,100	900

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 dollar amount.)

Reference no: EM13589939

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