Practice Question - Allocation of Service Department Costs 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 Administration Janitorial Maintenance $ 140,000 $ 105,000 $ 48,000 60 35 140 15,000 10,000 20,000 Costs Number of employees Square feet space occupied Hours of press time Operating Departments Blinding Printing Total $ 275,000 $430,000 $998,000 315 760 40,000 100,000 185,000 210 30,000 60,000 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: 1. Using the step-down method, allocate the service department costs to the operating departments. 2- 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