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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
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 Costs $ 144,200 Number of employees Square feet of space occupied Hours of press time 60 15,000 $ 108,150 35 10,000 $ 49,440 140 20,000 Operating Departments Binding $283,250 315 40,000 30,000 Printing $ 442,900 210 100,000 60,000 Total $ 1,027,940 760 185,000 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.) Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations Service Departments Administration Janitorial Maintenance $ 144,200 $ 108,150 $ 49,440 $ Operating Departments Binding Total Printing 283,250 $ 442,900 $1,027,940
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