! 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 $ 166,600 60 $ 124,950 35 Square feet of space occupied Hours of press time 15,000 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 The company uses the step-down method to allocate service department costs in the following order: Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time). Required: Using the step-down method, allocate the service department costs to the operating departments. 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 $ 166,600 60 $ 124,950 35 Square feet of space occupied Hours of press time 15,000 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 The company uses the step-down method to allocate service department costs in the following order: Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time). Required: Using the step-down method, allocate the service department costs to the operating departments. 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
Domestic
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
$ 166,600
60
$ 124,950
35
Square feet of space occupied
Hours of press time
15,000
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
The company uses the step-down method to allocate service department costs in the following order: Administration (number of
employees), Janitorial (space occupied), and Maintenance (hours of press time).
Required:
Using the step-down method, allocate the service department costs to the operating departments.
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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