Answered step by step
Verified Expert Solution
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: Service
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 Costs Number of employees Square feet of space occupied Hours of press time Administration Janitorial $ 145,600 $ 109,200 60 35 15,000 10,000 Maintenance $ 49,920 140 20,000 Operating Departments Binding $ 286,000 315 40,000 30,000 Printing $ 447,200 210 100,000 60,000 Total $ 1,037,920 760 185,000 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 Allocations: $ 145,600 $ 109,200 $ 49,920 $ 286,000 $ 447,200 $ 1,037,920 Administration costs Janitorial costs Maintenance costs Total costs after allocations
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started