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The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Costs Service Departments Administration Janitorial $ 140,000
The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Costs Service Departments Administration Janitorial $ 140,000 Square feet of space occupied 60 15,000 $ 105,000 35 10,000 Maintenance $ 48,000 140 20,000 Hours of press time Number of employees Operating Departments Binding $ 275,000 315 40,000 30,000 Printing $ 430,000 210 100,000 60,000 Total $ 998,000 760 185,000 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 the company uses the direct method rather than the step-down method, how much cost would be assigned to each operating department? Note: 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 Departmental costs before allocations $ 140,000 $ 105,000 $ 48,000 $ Total Printing 275,000 $ 430,000 $ 998,000 Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations $ 140,000 $ 105,000 $ 48,000 $ 275,000 $ 430,000 $ 998,000
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