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SB Exercise 4B-3 through Exercise 4B-4 (Algo) The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period
SB Exercise 4B-3 through Exercise 4B-4 (Algo) 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 Administration Janitorin Maintenance Binding Printing Total Costs $145,600 $109,200 349,920 $286,000 5447,200 $1,037,920 Number of employees 60 140 210 760 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 90,000 315 Exercise 4B-4 (Algo) Direct Method [LO4-10) 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 o department os negative and allocations to a department os positive. The line should odd across to zero. Do not round intermediate calculations.) Service Departments Administration Janitorial Maintenance $ 145.600 5 109.2005 49.920 Operating Departments Binding Printing Total $ 286 000 $ 447,200 $ 1,037.920 Departmental costs before allocations Allocations Administration costs Janitorial costs Maintenance costs Total costs ofter allocations
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