Required information The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Service Departments Administration Janitorial Maintenance Costs Number of employees Square feet of space occupied Hours of press time $ 166,600 15,000 $ 124,950 60 35 10,000 $ 57,120 140 20,000 315 40,000 30,000 Operating Departments Binding Printing $ 327,250 $ 511,700 210 100,000 60,000 Total $ 1,187,620 760 185,000 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. Service Departments Operating Departments Total Administration Janitorial Maintenance Binding Printing Departmental costs before allocations $ 166,600 $ 124,950 $ 57,120 $ 327,250 $ 511,700 $ 1,187,620 Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations
Required information The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Service Departments Administration Janitorial Maintenance Costs Number of employees Square feet of space occupied Hours of press time $ 166,600 15,000 $ 124,950 60 35 10,000 $ 57,120 140 20,000 315 40,000 30,000 Operating Departments Binding Printing $ 327,250 $ 511,700 210 100,000 60,000 Total $ 1,187,620 760 185,000 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. Service Departments Operating Departments Total Administration Janitorial Maintenance Binding Printing Departmental costs before allocations $ 166,600 $ 124,950 $ 57,120 $ 327,250 $ 511,700 $ 1,187,620 Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sagar
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 Janitorial Maintenance
Costs
Number of employees
Square feet of space occupied
Hours of press time
$ 166,600
15,000
$ 124,950
60
35
10,000
$ 57,120
140
20,000
315
40,000
30,000
Operating Departments
Binding Printing
$ 327,250 $ 511,700
210
100,000
60,000
Total
$ 1,187,620
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.
Service Departments
Operating Departments
Total
Administration Janitorial
Maintenance
Binding
Printing
Departmental costs before allocations
$ 166,600 $ 124,950 $
57,120 $
327,250 $ 511,700 $ 1,187,620
Allocations:
Administration costs
Janitorial costs
Maintenance costs
Total costs after allocations
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