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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 24E: Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to...
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