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
Administrative
Janitorial
Maintenance
Binding
Printing
Total
Costs
$93,300
$66,200
$44,800
$248,300
$490,600
$943,200
Number of employees
60
90
260
630
320
1,360
Square feet of space occupied
3,100
11,800
8,800
10,400
68,900
103,000
Hours of press time
9,600
28,200
37,800
Required:
Assuming that the company uses the direct method rather than the step-down method to allocate service department costs, how much cost would be assigned to each operating department? (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
Overhead costs
$93,300
$66,200
$44,800
$248,300
$490,600
$943,200
Allocations:
Administration costs
Janitorial costs
Maintenance costs
Total overhead costs after allocations
Answer & Explanation
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