Publishing Company has three service departments and two operating departments. Selected data from a recent...
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Accounting
Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow:
Service Departments
Operating Departments
Administration
Janitorial
Maintenance
Binding
Printing
Total
Costs
$78,000
$65,000
$40,000
$255,000
$543,000
$981,000
Number of employees
133
95
380
950
475
2,033
Square feet of space occupied
5,700
22,800
19,000
38,000
133,000
218,500
Hours of press time
11,000
32,000
43,000
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. Round your answers to the nearest whole dollar amount.)
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