Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

image text in transcribed

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: Costs Number of employees Square feet of space occupied Hours of press time Service Departments Administration Janitorial Maintenance $152,600 $114,450 $52,320 60 35 140 15,000 10,000 20,000 Operating Departments Binding Printing $299,750 $468,700 315 210 40,000 100,000 30,000 60,000 Total $1,087,820 760 185,000 90,000 Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Required: Assuming that the company uses the direct method to allocate service department costs, how much cost would be assigned to each operating department? (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 $ 152,600 $ 114.450 $ 52,320 Operating Departments Binding Printing $ 299,750 $ 468,700 Total $ 1,087,820 Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations $ 152,600 $ 114,450 $ 52,320 $ 299,750 $ 468,700 S 1,087,820

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting For MBAs

Authors: Peter D. Easton

6th Edition

1618533592, 9781618533593

More Books

Students also viewed these Accounting questions