Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Costs

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: David Spiceland, Wayne Thomas, Don Herrmann

4th edition

1259307956, 978-1259307959

More Books

Students also viewed these Accounting questions

Question

Which of the following is a part of manufacturing overhead?

Answered: 1 week ago