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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 2BE: Support department allocations The centralized computer technology department of Hardy Company has...

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