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kercise 4B-3 Step-Down Method [LO4-11] e Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on e
kercise 4B-3 Step-Down Method [LO4-11] e Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on e five departments follow Service Departments Administration Janitorial Maintenance Operating Departments Printing Binding Total $70,000 95 19,200 $243,00 Costs Number of employees Square feet of space occupied Hours of press time $93,000 133 4,800 $43,000 380 16,000 950 32,000 19,000 475 112,000 40,000 2,033 184,000 59,000 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. (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 whole dollar amount.) Service Departments Administration Janitorial Maintenance Operating Departments Binding 243,000 S 490,000 939,000 Printing Total Departmental costs before allocations 93.000 70,000 S 43000 K Prev4 of 5 Next>
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