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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 Janitorial Maintenance Costs Number of employees Square feet of space occupied Hours of press time $ 166,600 15,000 $ 124,950 60 35 10,000 $ 57,120 140 20,000 315 40,000 30,000 Operating Departments Binding Printing $ 327,250 $ 511,700 210 100,000 60,000 Total $ 1,187,620 760 185,000 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. Service Departments Operating Departments Total Administration Janitorial Maintenance Binding Printing Departmental costs before allocations $ 166,600 $ 124,950 $ 57,120 $ 327,250 $ 511,700 $ 1,187,620 Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations

Required information The Ferre Publishing Company provided the following data for its three service departments and two operating departments. Service Departments Administration Janitorial Maintenance Costs Number of employees Square feet of space occupied Hours of press time $ 166,600 15,000 $ 124,950 60 35 10,000 $ 57,120 140 20,000 315 40,000 30,000 Operating Departments Binding Printing $ 327,250 $ 511,700 210 100,000 60,000 Total $ 1,187,620 760 185,000 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. Service Departments Operating Departments Total Administration Janitorial Maintenance Binding Printing Departmental costs before allocations $ 166,600 $ 124,950 $ 57,120 $ 327,250 $ 511,700 $ 1,187,620 Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations

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
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 1CMA
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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 Janitorial Maintenance Costs Number of employees Square feet of space occupied Hours of press time $ 166,600 15,000 $ 124,950 60 35 10,000 $ 57,120 140 20,000 315 40,000 30,000 Operating Departments Binding Printing $ 327,250 $ 511,700 210 100,000 60,000 Total $ 1,187,620 760 185,000 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. Service Departments Operating Departments Total Administration Janitorial Maintenance Binding Printing Departmental costs before allocations $ 166,600 $ 124,950 $ 57,120 $ 327,250 $ 511,700 $ 1,187,620 Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations
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 Janitorial Maintenance Costs Number of employees Square feet of space occupied Hours of press time $ 166,600 15,000 $ 124,950 60 35 10,000 $ 57,120 140 20,000 315 40,000 30,000 Operating Departments Binding Printing $ 327,250 $ 511,700 210 100,000 60,000 Total $ 1,187,620 760 185,000 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. Service Departments Operating Departments Total Administration Janitorial Maintenance Binding Printing Departmental costs before allocations $ 166,600 $ 124,950 $ 57,120 $ 327,250 $ 511,700 $ 1,187,620 Allocations: Administration costs Janitorial costs Maintenance costs Total costs after allocations
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