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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: 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 Administration Janitorial Maintenance $82,000 $67,000 $41,000 260 4,500 18,000 15,000 91 Costs Number of employees Square feet of space occupied Hours of press time Operating Departments Binding Printing $251,000 $453,000 650 325 30,000 105,000 11,000 39,000 65 Total $894,000 1,391 172,500 50,000 The company allocates service department costs by the step-down method in the following order: Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time). Required: Using the step-down method, allocate the service department costs to the operating departments. (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. Round your answers to the nearest whole dollar amount.) Service Departments Administration Janitorial Maintenance $ 82,000 $ 67,000 $ 41,000 Operating Departments Binding Printing $ 251,000 $ 453,000 Total 894,000 $ Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocation $ 82,000 $ 67,000 $ 41,000 $ 251,000 $ 453,000 $ 894,000
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