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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:
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 $161,000 $120,750 $55,200 60 35 140 15,000 10,000 20,000 Operating Departments Binding Printing $316,250 $494,500 315 210 40,000 100,000 30,000 60,000 Total $1,147,700 760 185,000 90,000 The company allocates service department costs by the step-down method in the following order: Administration (number of mployees), Janitorial (space occupied), and Maintenance (hours of press time). Required: sing the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a epartment as negative and allocations to a department as positive. The line should add across to zero. Do not round ntermediate calculations.) Service Departments Administration Janitorial Maintenance $ 161,000 $ 120,750 $ 55,200 Operating Departments Binding Printing Total $ 316,250 $ 494,500 $ 1,147,700 Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations $ 161,000 $ 120,750 $ 55,200 $ 316,250 $ 494,500 $ 1,147,700 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 $161,000 $ 120, 750 $55,200 60 35 140 15,000 20,000 Operating Departments Binding Printing $316,250 $494,500 315 210 40,000 100,000 30,000 60,000 Total $1,147,700 760 185,000 90,000 10,000 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 $ 161,000 $ 120,750 $ 55,200 Operating Departments Binding Printing Total 316,250 $ 494,500 $ 1,147,700 Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations
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