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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:

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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 Janitorial Maintenance Coats $155,400 $116,550 $53,280 Number of employees 60 35 140 Square feet of space occupied 15,000 10,000 20,000 Hours of press time Operating Departments Binding Printing $305,250 $477,300 315 210 40,000 100,000 30,000 60.000 Total $1,107,780 760 185,000 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 $ 156.400 $ 116,550 $ 53.280 Operating Departments Binding Printing Total $ 305,250 $ 477,300 $ 1,107,780 Departmental costs before allocations Allocations: Required: Using the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a Slepartment 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 $ 155,400 $ 116,550 $ 53,280 Operating Departments Binding Printing $ 305,250 S 477,300 $ Total 1,107,780 Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations

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