Question
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
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 | Total | ||||
---|---|---|---|---|---|---|
Administration | Janitorial | Maintenance | Binding | Printing | ||
Costs | $ 151,200 | $ 113,400 | $ 51,840 | $ 297,000 | $ 464,400 | $ 1,077,840 |
Number of employees | 60 | 35 | 140 | 315 | 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 |
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.)
Check my work VI PICOS LTIC. 00 8 Required information ASSUTIIy lidt LITE company uses the UNELTELTOU LU allocate Service ueparinen COSLS, TOW MUCIT COSL WOulu De 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.) Part 2 of 2 2012 Total 1.48 points Service Departments Administration Janitorial Maintenance S 151,200 S 113,400 $ 51,840 Operating Departments Binding Printing S 297,000 $ 464,400 Departmental costs before allocations $ 1,077,840 Allocations: eBook Administration costs Janitorial costs Hint Print Maintenance costs Total costs after allocations $ 151,200 S 113,400 $ 51,840 $ 297,000 $ 464,400 $ 1,077,840 References
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