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Service Departments Operating Departments Printing Administration Maintenance Binding Total Janitorial Costs Number of employees.. Square feet of space occupied. Hours of press time. $140,000 60 $105,000 $48,000 140 $275,000 $430,000 $998,000 35 10,000 315 40,000 30,000 210 100,000 760 15,000 20,000 185,000 60,000 90,000

Service Departments Operating Departments Printing Administration Maintenance Binding Total Janitorial Costs Number of employees.. Square feet of space occupied. Hours of press time. $140,000 60 $105,000 $48,000 140 $275,000 $430,000 $998,000 35 10,000 315 40,000 30,000 210 100,000 760 15,000 20,000 185,000 60,000 90,000

FINANCIAL ACCOUNTING
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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Step-Down Method

The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow

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).

Required:

Using the step-down method, allocate the service department costs to the operating departments.:

Service Departments Operating Departments Printing Administration Maintenance Binding Total Janitorial Costs Number of employees.. Square feet of space occupied. Hours of press time. $140,000 60 $105,000 $48,000 140 $275,000 $430,000 $998,000 35 10,000 315 40,000 30,000 210 100,000 760 15,000 20,000 185,000 60,000 90,000
Transcribed Image Text:Service Departments Operating Departments Printing Administration Maintenance Binding Total Janitorial Costs Number of employees.. Square feet of space occupied. Hours of press time. $140,000 60 $105,000 $48,000 140 $275,000 $430,000 $998,000 35 10,000 315 40,000 30,000 210 100,000 760 15,000 20,000 185,000 60,000 90,000
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