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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 Administration Janitorial Maintenance Costs $141,400 $106,050 $48,480 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 Total $277,750 $434,300 $1,007,980 315 210 760 40,000 100,000 185,000 30,000 60,000 90,000 Exercise 48-4 (Algo) Direct Method (L04-10) 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 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 $ 141,400 $ 106,050 $ 48.480 Operating Departments Binding Printing Total $ 277,750 $ 434,300 $ 1.007.980 Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations
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