! Required information The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Service Departments Administration Costs Number of employees $ 140,000 Square feet of space occupied Hours of press time 60 15,000 Janitorial $ 105,000 35 Maintenance 10,000 $ 48,000 140 20,000 Operating Departments Binding Printing $275,000 $ 430,000 210 100,000 60,000 315 40,000 30,000 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. Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Service Departments Administration Janitorial Maintenance $ 140,000 $ 105,000 $ 48,000 $ Operating Departments Binding Printing 275,000 $ Total 430,000 $ 998,000 Total costs after allocations $ 140,000 $ 105,000 $ 48,000 $ 275,000 $ 430,000 $ 998,000
! Required information The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Service Departments Administration Costs Number of employees $ 140,000 Square feet of space occupied Hours of press time 60 15,000 Janitorial $ 105,000 35 Maintenance 10,000 $ 48,000 140 20,000 Operating Departments Binding Printing $275,000 $ 430,000 210 100,000 60,000 315 40,000 30,000 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. Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Service Departments Administration Janitorial Maintenance $ 140,000 $ 105,000 $ 48,000 $ Operating Departments Binding Printing 275,000 $ Total 430,000 $ 998,000 Total costs after allocations $ 140,000 $ 105,000 $ 48,000 $ 275,000 $ 430,000 $ 998,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no
Transcribed Image Text:!
Required information
The Ferre Publishing Company provided the following data for its three service departments and two operating
departments.
Service Departments
Administration
Costs
Number of employees
$ 140,000
Square feet of space occupied
Hours of press time
60
15,000
Janitorial
$ 105,000
35
Maintenance
10,000
$ 48,000
140
20,000
Operating Departments
Binding Printing
$275,000 $ 430,000
210
100,000
60,000
315
40,000
30,000
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.
Departmental costs before allocations
Allocations:
Administration costs
Janitorial costs
Maintenance costs
Service Departments
Administration Janitorial
Maintenance
$
140,000 $ 105,000 $
48,000 $
Operating Departments
Binding
Printing
275,000 $
Total
430,000 $
998,000
Total costs after allocations
$ 140,000 $
105,000 $
48,000 $ 275,000 $
430,000 $
998,000
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