Madision Park Co-op, a grocery and gift shop, has provided the following data to

Question

Madision Park Co-op, a grocery and gift shop, has provided the following data to be used in its service department cost allocations Service Departments erating Departments AdministrationJanitorial Groceries Gifts Departmental costs before allocations 150,000 Employee-hours Space occupied in square metres 320 250 S 40,000 160 100 $ 2,320,000 950,000 740 1,000 3,100 4,000 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 on the costs of the Janitorial Services Department 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.) Service Departments Operating Departments Groceries Administration Janitorial Gifts Total 40,0002,320,000 $ 950,000 3,460,000 Departmental costs before allocations Allocation 150,000$ Administration costs Janitorial costs Total costs after allocation

Explanation / Answer

Service Department Operating Departments Administration janitorial Groceries gifts total Departmental costs before allocations 150,000 40,000 2,320,000 950,000 3,460,000 allocations: Administration costs (160:3100:740) -150,000 6000 116250 27750 0 physical plant costs (4:1) -46,000 36800 9,200 0 total costs after allocation 0 0 2,473,050 986,950 3,460,000

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.