The Ferre Publishing Company has three service departments and two operating departments. Selected data from...

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Accounting

The Ferre 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 $73,000 $61,000 $35,000 $256,000 $534,000 $959,000
Number of employees 126 90 360 900 450 1,926
Square feet of space occupied 3,600 14,400 12,000 24,000 84,000 138,000
Hours of press time 14,000 35,000 49,000

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 dollar amount.)

Service Departments Operating Departments
Administration Janitorial Maintenance Binding Printing Total
Costs $73,000 $61,000 $35,000 $256,000 $534,000 $959,000
Allocations:
Administration costs
Janitorial costs
Maintenance costs
Total costs after allocation

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