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Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Required: Assuming that the
Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time.
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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.)
7 Part 2012 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: 16 points Costs Number of employees Square feet of space occupied Hours ut press time Service Departments Administration anii urial Maintenance $159,500 $119,7ee $54,20 ce 35 14 15.ee 10 000 28,888 Operating Departments Binding Printing $313,589 $499, 280 315 218 48,888 188,888 30,000 se, see $1 137,728 760 185,898 se see eBook Administration is allocated based on number of employees: Janitorial based on space occupled; and Maintenance based on hours of 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.) Reference: Service Departments Administration Janitorial Maintenance S 159,800 s 119.700S 54 720 Operating Departments Binding Printing Total 313,500 490 2001 $ 1.137.720 Departmental costs before allocations Allocations Administration costs Janitorial costs Maintenance costs Total costs after allocations S 159,800 $ 119,700 S 54 720 $ 490,2005 1.137,720 313.500 5Step by Step Solution
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