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a. b. Required Information The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five
a. b. Required Information The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow. Costs Number of employees Square feet of space occupied Hours of press time Service Departments Administration Janitorial Maintenance $159,600 $119,700 $54,720 60 35 140 15,660 10,000 20,000 Operating Departments Binding Printing $313,500 $490,200 315 210 40,000 100,000 30,000 60,00 Total $1,137,720 760 185,000 90,000 The company allocates service department costs by the step-down method in the following order. Administration number of employees). Janitorial (space occupled). and Maintenance (hours of press time). Required: Using the stop-down method, allocate the service department costs to the operating departments. (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.) Service Departments Administration Janitorial Maintenance 5 150,000 $ 119,7005 54.720 Operating Department Binding Printing Total $ 313,500 5 400,200 $ 1,137,720 Departmental costs before allocations Allocations Administration costs Jansons costs Maintenance costs Total costs after allocations Administration is allocated based on number of employees, Janitorial based on spa press time Required Assuming that the company uses the direct method to allocate service department costs, how much cost would be assigned to each operating department? (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.) Service Departments Administration Janitorial Maintenance $ 159,8005 119,700 $ 54 720 Operating Departments Binding Printing Total $ 313.500 5 490,200 $ 1.137,720 Departmental costs before allocations Allocations Administration costs Janitorial costs Maintenance costs Total costs aher alocations
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