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

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

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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