Question
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:
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 | Operating Departments | Total | ||||
---|---|---|---|---|---|---|
Administration | Janitorial | Maintenance | Binding | Printing | ||
Costs | $ 151,200 | $ 113,400 | $ 51,840 | $ 297,000 | $ 464,400 | $ 1,077,840 |
Number of employees | 60 | 35 | 140 | 315 | 210 | 760 |
Square feet of space occupied | 15,000 | 10,000 | 20,000 | 40,000 | 100,000 | 185,000 |
Hours of press time | 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:
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.)
Check my work 7 Required information a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations.) Part 1 of 2 Total 1.42 points Service Departments Operating Departments Administration Janitorial Maintenance Binding Printing $ 151,200 $ 113,400 $ 51,840 $ 297,000 $ 464,400 $ 1,077,840 Departmental costs before allocations Allocations: Administration costs eBook Janitorial costs Print Maintenance costs References Total costs after allocations $ 151,200 $ 113,400 51,840 $ 297.000 $ 464,400 $ 1,077,840
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