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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 are as follows: #### Service Departments 1. **Administration** - Costs: $154,000 - Number of Employees: 60 - Square Feet of Space Occupied: 15,000 - Hours of Press Time: Not applicable 2. **Janitorial** - Costs: $115,500 - Number of Employees: 35 - Square Feet of Space Occupied: 10,000 - Hours of Press Time: Not applicable 3. **Maintenance** - Costs: $52,800 - Number of Employees: 140 - Square Feet of Space Occupied: 20,000 - Hours of Press Time: Not applicable #### Operating Departments 1. **Binding** - Costs: $302,500 - Number of Employees: 315 - Square Feet of Space Occupied: 40,000 - Hours of Press Time: 30,000 2. **Printing** - Costs: $473,000 - Number of Employees: 210 - Square Feet of Space Occupied: 100,000 - Hours of Press Time: 60,000 #### Total - Costs: $1,097,800 - Number of Employees: 760 - Square Feet of Space Occupied: 185,000 - Hours of Press Time: 90,000 #### Allocation Method The company allocates service department costs by the step-down method in the following order: 1. **Administration** (based on the number of employees) 2. **Janitorial** (based on space occupied) 3. **Maintenance** (based on hours of press time) ### Requirement Using the step-down method, allocate the service department costs to the operating departments. 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. #### Allocation Table | Service Departments | Operating Departments | | |---------------------|-----------------------|----------| | | | **Total**| | **Administration** | **Janitorial** | **Maintenance** | **Binding** | **Printing** | | | Departmental Costs Before Allocations | $154,
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 are as follows: #### Service Departments 1. **Administration** - Costs: $154,000 - Number of Employees: 60 - Square Feet of Space Occupied: 15,000 - Hours of Press Time: Not applicable 2. **Janitorial** - Costs: $115,500 - Number of Employees: 35 - Square Feet of Space Occupied: 10,000 - Hours of Press Time: Not applicable 3. **Maintenance** - Costs: $52,800 - Number of Employees: 140 - Square Feet of Space Occupied: 20,000 - Hours of Press Time: Not applicable #### Operating Departments 1. **Binding** - Costs: $302,500 - Number of Employees: 315 - Square Feet of Space Occupied: 40,000 - Hours of Press Time: 30,000 2. **Printing** - Costs: $473,000 - Number of Employees: 210 - Square Feet of Space Occupied: 100,000 - Hours of Press Time: 60,000 #### Total - Costs: $1,097,800 - Number of Employees: 760 - Square Feet of Space Occupied: 185,000 - Hours of Press Time: 90,000 #### Allocation Method The company allocates service department costs by the step-down method in the following order: 1. **Administration** (based on the number of employees) 2. **Janitorial** (based on space occupied) 3. **Maintenance** (based on hours of press time) ### Requirement Using the step-down method, allocate the service department costs to the operating departments. 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. #### Allocation Table | Service Departments | Operating Departments | | |---------------------|-----------------------|----------| | | | **Total**| | **Administration** | **Janitorial** | **Maintenance** | **Binding** | **Printing** | | | Departmental Costs Before Allocations | $154,
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