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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: Costs Number of employees Square feet of space occupied Hours of press time Service Departments Administration Janitorial Maintenance $140,000 $105,000 $49,000 60 35 140 15,000 10,000 20,000 Operating Departments Binding Printing $275,000 $430,000 315 210 40,000 100,000 30,000 60,000 Total $998,000 760 185,000 90,000 The company allocates service department costs based on..:Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time). Required: Using Matrix Algebra, allocate the service department costs to the operating departments, (Use an LA Matrix taken to the 8th power.) Service Departments Administration Janitorial Maintenance $ 140,000 $ 105.000 $ 48.000 Operating Departments Binding Printing $ 275,000 $ 430,000 $ Total 999,000 Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations $ 998,000

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