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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. Departmental costs before allocations Allocations: Service Departments Administration Janitorial Maintenance Binding $ 154,000 $ 115,500 $ 52,800 $ 302,500 140 315 20,000 40,000 30,000 Administration costs Janitorial costs Maintenance costs Total costs after allocations 60 15,000 The company allocates service department costs by the step-down method in the following order: Administration (number of mployees), Janitorial (space occupied), and Maintenance (hours of press time). Administration $ Cequired: Using the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a lepartment as negative and allocations to a department as positive. The line should add across to zero. Do not round ntermediate calculations.) Service Departments (154,000) Janitorial 35 10,000 $ 154,000 $ 115,500 $ 0 0 0 $ 0 115,500 Maintenance $ Operating Departments Printing $ 473,000 210 100,000 60,000 52,800 $ 52,800 $ Operating Departments Binding 302,500 $ Total $ 1,097,800 302,500 $ Total 760 185,000 90,000 Printing 473,000 $1,097,800 473,000 $ 943,800

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. Departmental costs before allocations Allocations: Service Departments Administration Janitorial Maintenance Binding $ 154,000 $ 115,500 $ 52,800 $ 302,500 140 315 20,000 40,000 30,000 Administration costs Janitorial costs Maintenance costs Total costs after allocations 60 15,000 The company allocates service department costs by the step-down method in the following order: Administration (number of mployees), Janitorial (space occupied), and Maintenance (hours of press time). Administration $ Cequired: Using the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a lepartment as negative and allocations to a department as positive. The line should add across to zero. Do not round ntermediate calculations.) Service Departments (154,000) Janitorial 35 10,000 $ 154,000 $ 115,500 $ 0 0 0 $ 0 115,500 Maintenance $ Operating Departments Printing $ 473,000 210 100,000 60,000 52,800 $ 52,800 $ Operating Departments Binding 302,500 $ Total $ 1,097,800 302,500 $ Total 760 185,000 90,000 Printing 473,000 $1,097,800 473,000 $ 943,800

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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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 Departmental costs before allocations Allocations: Service Departments Administration Janitorial Maintenance $ 154,000 $ 115,500 $ 52,800 140 20,000 Administration costs Janitorial costs Maintenance costs Total costs after allocations 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). $ 60 15,000 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.) Service Departments Administration Janitorial $ 154,000 $ 115,500 $ (154,000) 0 0 0 35 10,000 $ 0 115,500 Operating Departments Binding $ 302,500 315 40,000 30,000 Printing $ 473,000 210 100,000 60,000 Maintenance $ Operating Departments Binding Printing 52,800 $ 302,500 $ 52,800 $ Total $ 1,097,800 760 185,000 90,000 302,500 $ Total 473,000 $ 1,097,800 473,000 $ 943,800
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 Departmental costs before allocations Allocations: Service Departments Administration Janitorial Maintenance $ 154,000 $ 115,500 $ 52,800 140 20,000 Administration costs Janitorial costs Maintenance costs Total costs after allocations 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). $ 60 15,000 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.) Service Departments Administration Janitorial $ 154,000 $ 115,500 $ (154,000) 0 0 0 35 10,000 $ 0 115,500 Operating Departments Binding $ 302,500 315 40,000 30,000 Printing $ 473,000 210 100,000 60,000 Maintenance $ Operating Departments Binding Printing 52,800 $ 302,500 $ 52,800 $ Total $ 1,097,800 760 185,000 90,000 302,500 $ Total 473,000 $ 1,097,800 473,000 $ 943,800
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