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 shouldacross to zero. Do not round intermediate calculations.Departmental costs before allocationsAllocations:Administration costsJanitorial costsMaintenance costsTotal costs after allocationsService DepartmentsAdministration Janitorial Maintenance$ 147,000 $ 110,250 $ 50,400 $(147,000)000$110,25050,400 $Operating DepartmentsBinding Printing288,750 $ 451,500 $ 1,047,900288,750$451,500 $Total900,900 The Ferre Publishing Company provided the following data for its three service departments and two operatingdepartments.CostsNumber of employeesSquare feet of space occupiedHours of press timeService DepartmentsAdministration Janitorial Maintenance$ 147,000 $ 110,250 $ 50,4003514010,00020,0006015,000$ 451,500Operating DepartmentsBinding Printing$ 288,75031540,00030,000210100,00060,000Total$ 1,047,900760185,00090,000The company uses the step-down method to allocate service department costs in the following order: Administration (number ofemployees), Janitorial (space occupied), and Maintenance (hours of press time).

In step down method cost of service department is allocated to production department on step basis.…

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 shou across to zero. Do not round intermediate calculations. Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations Service Departments Administration Janitorial Maintenance $ 147,000 $ 110,250 $ $ (147,000) 0 0 0 $ 110,250 $ 50,400 $ 50,400 $ Operating Departments Binding Printing 288,750 $ 288,750 $ Total 451,500 $ 1,047,900 451,500 $ 900,900

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 shou across to zero. Do not round intermediate calculations. Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations Service Departments Administration Janitorial Maintenance $ 147,000 $ 110,250 $ $ (147,000) 0 0 0 $ 110,250 $ 50,400 $ 50,400 $ Operating Departments Binding Printing 288,750 $ 288,750 $ Total 451,500 $ 1,047,900 451,500 $ 900,900

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: Service Departments Administration Janitorial Maintenance $ 144,200 $ 108,150 $ 49,440 140 20,000 Administration costs Janitorial costs Maintenance costs Total costs after allocations 60 15,000 Administration $ The company allocates service department costs by the step-down method in the following order: Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time). Service Departments Janitorial $ 144,200 $ 108,150 $ 35 10,000 Required: Using the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line…
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The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Service Department Operating Department A B C 1 2 Total Overhead costs £ 100,000 £ 115,000 £ 73,000 £ 266,500 £ 289,000 £ 843,500 Number of employees 57 33 132 297 198 717 Square feet of space occupied 12,600 7,100 21,000 42,000 105,000 187,700 Hours of press time 34,000 68,000 102,000 The company allocates service department costs by the step method in the following order: A (number of employees), B (space occupied), and C (hours of press time). The company makes no distinction between variable and fixed service department costs. Required: Using the step method, allocate the service department costs to the operating departments. (Do not round intermediate calculations. Amounts to be deducted…
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