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Exercise 4B-2(Algo) Step-Down Method [LO4-11]Exercise 4B-2(Algo) Step-Down Method [LO4-11] Madison Park Co-op, a...

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Accounting

Exercise 4B-2(Algo) Step-Down Method [LO4-11]Exercise 4B-2(Algo) 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:
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 whole dollar amount.)
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:
\table[[,Service Departments,Operating Departments],[,Administration,Janitorial,Groceries,Gifts],[Departmental costs before allocations,$200,000,$60,000,$3,820,000,$350,000
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