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! Required information The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Service Departments Administration Costs Number of employees $ 140,000 Square feet of space occupied Hours of press time 60 15,000 Janitorial $ 105,000 35 Maintenance 10,000 $ 48,000 140 20,000 Operating Departments Binding Printing $275,000 $ 430,000 210 100,000 60,000 315 40,000 30,000 Total $ 998,000 760 185,000 90,000 Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Required: Assuming the company uses the direct method rather than the step-down method, how much cost would be assigned to each operating department? Note: 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. Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Service Departments Administration Janitorial Maintenance $ 140,000 $ 105,000 $ 48,000 $ Operating Departments Binding Printing 275,000 $ Total 430,000 $ 998,000 Total costs after allocations $ 140,000 $ 105,000 $ 48,000 $ 275,000 $ 430,000 $ 998,000

! Required information The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Service Departments Administration Costs Number of employees $ 140,000 Square feet of space occupied Hours of press time 60 15,000 Janitorial $ 105,000 35 Maintenance 10,000 $ 48,000 140 20,000 Operating Departments Binding Printing $275,000 $ 430,000 210 100,000 60,000 315 40,000 30,000 Total $ 998,000 760 185,000 90,000 Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Required: Assuming the company uses the direct method rather than the step-down method, how much cost would be assigned to each operating department? Note: 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. Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Service Departments Administration Janitorial Maintenance $ 140,000 $ 105,000 $ 48,000 $ Operating Departments Binding Printing 275,000 $ Total 430,000 $ 998,000 Total costs after allocations $ 140,000 $ 105,000 $ 48,000 $ 275,000 $ 430,000 $ 998,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 2BE: Support department allocations The centralized computer technology department of Hardy Company has...
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! Required information The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Service Departments Administration Costs Number of employees $ 140,000 Square feet of space occupied Hours of press time 60 15,000 Janitorial $ 105,000 35 Maintenance 10,000 $ 48,000 140 20,000 Operating Departments Binding Printing $275,000 $ 430,000 210 100,000 60,000 315 40,000 30,000 Total $ 998,000 760 185,000 90,000 Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Required: Assuming the company uses the direct method rather than the step-down method, how much cost would be assigned to each operating department? Note: 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. Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Service Departments Administration Janitorial Maintenance $ 140,000 $ 105,000 $ 48,000 $ Operating Departments Binding Printing 275,000 $ Total 430,000 $ 998,000 Total costs after allocations $ 140,000 $ 105,000 $ 48,000 $ 275,000 $ 430,000 $ 998,000
Transcribed Image Text:! Required information The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Service Departments Administration Costs Number of employees $ 140,000 Square feet of space occupied Hours of press time 60 15,000 Janitorial $ 105,000 35 Maintenance 10,000 $ 48,000 140 20,000 Operating Departments Binding Printing $275,000 $ 430,000 210 100,000 60,000 315 40,000 30,000 Total $ 998,000 760 185,000 90,000 Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Required: Assuming the company uses the direct method rather than the step-down method, how much cost would be assigned to each operating department? Note: 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. Departmental costs before allocations Allocations: Administration costs Janitorial costs Maintenance costs Service Departments Administration Janitorial Maintenance $ 140,000 $ 105,000 $ 48,000 $ Operating Departments Binding Printing 275,000 $ Total 430,000 $ 998,000 Total costs after allocations $ 140,000 $ 105,000 $ 48,000 $ 275,000 $ 430,000 $ 998,000
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