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The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Costs
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 Service Departments Square feet of space occupied Hours of press time Administration Janitorial $ 163,800 $ 122,850 60 15,000 35 10,000 Maintenance $ 56,160 140 20,000 Operating Departments Binding $ 321,750 315 40,000 30,000 Printing $ 503,100 210 100,000 60,000 Total $ 1,167,660 760 185,000 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.) Service Departments Administration Janitorial Maintenance Operating Departments Binding Total Printing Departmental costs before allocations $ 163,800 $ 122,850 $ 56,160 $ 321,750 $ 503,100 $ 1,167,660) Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations $ 163,800 $ 122,850 $ 56,160 $ 321,750 $ 503,100 $ 1,167,660
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