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Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Service Departments Operating Departments Costs Number

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Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Service Departments Operating Departments Costs Number of employees Square metres of space occupied Machine-hours Administrative $84,000 80 300 Equipment Janitorial Maintenance $67,800 $36,000 60 240 1,200 1,000 Prep $256,100 600 2,000 10,000 Finishing $498,600 300 7.000 30,000 Total $942.500 1,280 11.500 40,000 The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupied), and Equipment Maintenance (machine-hours). Required: Assuming that the company uses the direct method rather than the step-down method to allocate service department costs, how much overhead cost would be assigned to each operating department? (Negative amounts should be indicated by a minus sign.) Service Departments Oporating Departments Administrative Janitorial Equipment Maintenance Prep Finishing Total Departmental costs before allocations Allocations: Administrative Janitorial Equipment maintenance Total costs after allocation Madision Park Co-op, a grocery and gift shop, has provided the following data to be used in its service department cost allocations: Departmental costs before allocations Employee-hours Space occupied in square metres Service Departments Operating Departments Administration Janitorial Groceries Gifts $ $ $ 150,000 $40,000 2,320,000 950,000 320 160 3,100 740 250 100 4,000 1,000 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 Administration Janitorial Groceries Gifts Total Departmental costs before allocations $ 150,000 $ 40,000 $2,320,000 S 950,000 S 3,460,000 Allocation Administration costs Janitorial costs Total costs after allocation Okanagan College has provided the following data to be used in its service department cost allocations: Service Departments Physical Plant Administration Services $1,500,000 $654,000 2,500 750 Operating Departments Undergraduate Graduate Programs Programs $32,650,000 $1,890,000 40,000 10.000 25.000 5.000 Departmental costs before allocations Student credit hours Space occupied in square metres Required: Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the costs of the Administration Department based on student credit hours and the costs of the Physical Plant Services Department based on space occupied. (Negative amounts should be indicated by a minus sign.) Service Departments Operating Departments Administration Physical Plant Undergraduate Graduate Services Programs Programs Total Departmental costs before allocations Allocations: Administration costs Physical Plant costs Total costs after allocation

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