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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: Costs Number of employees Square feet of space occupied Hours of press time Service Departments Administration Janitorial Maintenance $152,600 $ 52,320 $ 114,450 35 10,000 140 20,000 60 15,000 Operating Departments Binding $ 299,750 315 40,000 30,000 Printing $ 468,700 210 100,000 60,000 Total $ 1,087,820 760 185,000 90,000

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 Service Departments Administration Janitorial Maintenance $152,600 $ 52,320 $ 114,450 35 10,000 140 20,000 60 15,000 Operating Departments Binding $ 299,750 315 40,000 30,000 Printing $ 468,700 210 100,000 60,000 Total $ 1,087,820 760 185,000 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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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 Service Departments Administration Janitorial Maintenance $152,600 $ 52,320 140 20,000 $ 114,450 35 10,000 60 15,000 Operating Departments Binding $ 299,750 315 40,000 30,000 Printing $ 468,700 210 100,000 60,000 Total $ 1,087,820 768 185,000 90,000 The company allocates service department costs by the step-down method in the following order: Administration (number of employees), Janitorial (space occupled), and Maintenance (hours of press time). 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 should add across to zero. Do not round intermediate calculations.)
Transcribed Image Text: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 Service Departments Administration Janitorial Maintenance $152,600 $ 52,320 140 20,000 $ 114,450 35 10,000 60 15,000 Operating Departments Binding $ 299,750 315 40,000 30,000 Printing $ 468,700 210 100,000 60,000 Total $ 1,087,820 768 185,000 90,000 The company allocates service department costs by the step-down method in the following order: Administration (number of employees), Janitorial (space occupled), and Maintenance (hours of press time). 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 should add across to zero. Do not round intermediate calculations.)
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. (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.) Departmental costs before allocations. Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations Service Departments Administration Janitorial $ 152,600 $ 114,450 $ $ 152,600 $ Maintenance 114,450 $ 52,320 S 52,320 $ Operating Departments Binding Printing 299,750 $ 299,750 S Total 468,700 $ 1,087,820 468,700 S 1,087,820
Transcribed Image Text: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. (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.) Departmental costs before allocations. Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations Service Departments Administration Janitorial $ 152,600 $ 114,450 $ $ 152,600 $ Maintenance 114,450 $ 52,320 S 52,320 $ Operating Departments Binding Printing 299,750 $ 299,750 S Total 468,700 $ 1,087,820 468,700 S 1,087,820
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