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Required information SB Exercise 48-3 through Exercise 4B-4 (Algo) The Ferre Publishing Company has three service departments and two operating departments. Selected data from a

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Required information SB Exercise 48-3 through Exercise 4B-4 (Algo) 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 ministration Janitorial Maintenance Costs Binding Printing Total $163,800 $122,850 Number of employees $56,160 $321,750 $503, 100 $1,167,660 60 35 315 210 square feet of space oceupied 760 15,000 10,000 20,000 Ilours of press time 40,000 100,000 185,000 30,000 60,000 90,000 100 Exercise 4B-3 (Algo) Step-Down Method (L04-11) 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.) Exercise 48-3 (Algo) Step-Down Method (L04-11) 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.) Service Departments Administration Janitorial Maintenance $ 163,800 $ 122,850 $ 56.160 Operating Departments Binding Printing $ 321,750 $ 503,100 $ Total 1.107.660 Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations $ 163,800 $ 122,850 $ 56,180 $ 321,750 $ 503,100 $ 1,167,660

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