EXERCISE 4B-3 Step-Down Method LO4-11 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 Administration Janitorial Maintenance Binding Printing Total Costs Number of employees $140,000 $105,000 Square feet of space occupied 60 35 Hours of press time 15,000 10,000 $48,000 140 20,000 $275,000 315 40,000 30,000 $430,000 210 100,000 60,000 $998,000 760 185,000 90,000 The company allocates service department costs by the step-down method in the following order: Administration (number of employees). Janitorial (space occupied), and Maintenance (hours of press time). Required: Using the step-down method, allocate the service department costs to the operating departments.