General Printing Company has three service departments and two operating departments. Selected data for the five departments relating to the most recent period follow: Service Departments Training Janitorial Maintenance $400,000 $210,000 "$96,000 Operating Departments Offset Printing $ 400,000 630 Litho $534,000 Direct Overhead costs Number of employees Square metres of space occupied Number of Machine-hours 120 70 280 420 1,000 2,000 4,000 8,000 40,000 20,000 60,000 The company allocates service department costs in the following order and using the bases indicated: Training (number of employees), Janitorial (Space Occupied) and Maintenance (hours of press time). REQUIRED: Prepare a schedule, in good format, allocating the service departments' costs using the Step Method.
General Printing Company has three service departments and two operating departments. Selected data for the five departments relating to the most recent period follow: Service Departments Training Janitorial Maintenance $400,000 $210,000 "$96,000 Operating Departments Offset Printing $ 400,000 630 Litho $534,000 Direct Overhead costs Number of employees Square metres of space occupied Number of Machine-hours 120 70 280 420 1,000 2,000 4,000 8,000 40,000 20,000 60,000 The company allocates service department costs in the following order and using the bases indicated: Training (number of employees), Janitorial (Space Occupied) and Maintenance (hours of press time). REQUIRED: Prepare a schedule, in good format, allocating the service departments' costs using the Step Method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:General Printing Company has three service departments and two operating departments.
Selected data for the five departments relating to the most recent period follow:
Service Departments
Training Janitorial Maintenance
"$96,000
Operating Departments
Litho
$534,000
Offset Printing
Direct Overhead costs
$400,000 $210,000
$ 400,000
Number of employees
Square metres of space occupied
120
70
280
630
420
1,000
2,000
4,000
8,000
40,000
20,000
60,000
Number of Machine-hours
The company allocates service department costs in the following order and using the bases
indicated: Training (number of employees), Janitorial (Space Occupied) and Maintenance (hours
of press time).
REQUIRED:
Prepare a schedule, in good format, allocating the service departments' costs using the Step
Method.
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