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Required information The Ferre 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 $ 155,400 $ 116,550 35 10,000 quired: 60 15,000 Maintenance $ 53,280 140 20,000 Operating Departments Binding Printing $ 305,250 $ 477,300 315 210 40,000 100,000 30,000 60,000 Total $ 1,107,780 760 185,000 90,000 ministration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of ss time.

Required information The Ferre 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 $ 155,400 $ 116,550 35 10,000 quired: 60 15,000 Maintenance $ 53,280 140 20,000 Operating Departments Binding Printing $ 305,250 $ 477,300 315 210 40,000 100,000 30,000 60,000 Total $ 1,107,780 760 185,000 90,000 ministration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of ss time.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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! Required information. The Ferre 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 Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations Service Departments Administration Janitorial $ 155,400 $ 116,550 35 10,000 60 15,000 $ $ Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Administration Janitorial 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.) Service Departments Maintenance $ 53,280 140 20,000 155,400 $ 116,550 $ 155,400 $ Maintenance 116,550 $ Operating Departments Binding $ 305,250 315 40,000 30,000 53,280 $ 53,280 $ Printing $ 477,300 210 100,000 60,000 Total $ 1,107,780 760 185,000 90,000 305,250 $ Operating Departments Binding Printing 305,250 $ 477,300 $ 1,107,780 Total 477,300 $ 1,107,780
Transcribed Image Text:! Required information. The Ferre 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 Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations Service Departments Administration Janitorial $ 155,400 $ 116,550 35 10,000 60 15,000 $ $ Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Administration Janitorial 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.) Service Departments Maintenance $ 53,280 140 20,000 155,400 $ 116,550 $ 155,400 $ Maintenance 116,550 $ Operating Departments Binding $ 305,250 315 40,000 30,000 53,280 $ 53,280 $ Printing $ 477,300 210 100,000 60,000 Total $ 1,107,780 760 185,000 90,000 305,250 $ Operating Departments Binding Printing 305,250 $ 477,300 $ 1,107,780 Total 477,300 $ 1,107,780
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