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The Karangkraf Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Costs Number
The Karangkraf 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 Square feet of space occupied Hours of press time Service Departments Administration Janitorial Maintenance $140,000 $105.000 $48.000 60 35 140 15,000 10.000 20,000 Operating Departments Binding Printing $275,000 $430,000 315 210 40,000 100,000 30,000 60,000 Total $998,000 760 185,000 90,000 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). Assuming that the company uses the direct method rather than the step-down method to allocate service department costs, how much cost would be assigned to each operating department
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