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Chapter 4 Q6 The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments

Chapter 4 Q6

The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow:

Service Departments

Operating Departments

Administrative Janitorial Maintenance Binding Printing Total
Costs $94,800 $61,400 $39,900 $250,800 $505,000 $951,900
Number of employees 50 70 230 400 320 1,070
Square feet of space occupied 3,300 11,900 8,600 10,500 67,000 101,300
Hours of press time 8,900 29,100 38,000

Required:

Assuming that the company uses the direct method rather than the step-down 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. Round your answers to the nearest dollar amount.)

Service Departments Operating Departments
Administration Janitorial Maintenance Binding Printing Total
Overhead costs $94,800 $61,400 $39,900 $250,800 $505,000 $951,900
Allocations:
Administration costs
Janitorial costs
Maintenance costs
Total overhead costs after allocations $94,800 $61,400 $39,900 $250,800 $505,000 $951,900

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