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Business, 19.03.2021 18:40 deaerionharper

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.

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