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:
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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 |
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| Required: |
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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.)
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