Required information The Ferre Publishing Company has three service departments and two operating departments. Selected data...
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Required information 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 Costs $ 144,200 Number of employees Square feet of space occupied Hours of press time 60 15,000 Janitorial $ 108,150 35 Maintenance 10,000 $ 49,440 140 20,000 315 40,000 30,000 Operating Departments Binding Printing $ 283,250 $ 442,900 210 100,000 60,000 Total $ 1,027,940 760 185,000 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. (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 Departmental costs before allocations Allocations: $ 144,200 $ 108,150 $ 49,440 $ Administration costs (144,200) Operating Departments Binding Total Printing 283,250 $ 442,900 $ 1,027,940 Janitorial costs Maintenance costs Total costs after allocations $ 0 $ 108,150 $ 49,440 $ 283,250 $ 442,900 $ 883,740 Required information 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 Costs $ 144,200 Number of employees Square feet of space occupied Hours of press time 60 15,000 Janitorial $ 108,150 35 Maintenance 10,000 $ 49,440 140 20,000 315 40,000 30,000 Operating Departments Binding Printing $ 283,250 $ 442,900 210 100,000 60,000 Total $ 1,027,940 760 185,000 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. (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 Departmental costs before allocations Allocations: $ 144,200 $ 108,150 $ 49,440 $ Administration costs (144,200) Operating Departments Binding Total Printing 283,250 $ 442,900 $ 1,027,940 Janitorial costs Maintenance costs Total costs after allocations $ 0 $ 108,150 $ 49,440 $ 283,250 $ 442,900 $ 883,740
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