The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Service Department Operating Department A B C 1 2 Total Overhead costs £ 100,000 £ 115,000 £ 73,000 £ 266,500 £ 289,000 £ 843,500 Number of employees 57 33 132 297 198 717 Square feet of space occupied 12,600 7,100 21,000 42,000 105,000 187,700 Hours of press time 34,000 68,000 102,000 The company allocates service department costs by the step method in the following order: A (number of employees), B (space occupied), and C (hours of press time). The company makes no distinction between variable and fixed service department costs. Required: Using the step method, allocate the service department costs to the operating departments. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) Service Departments Operating Departments A B C 1 2 Total Overhead costs Allocation: Department A: Department B: Department C: Total overhead costs after allocations
The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Service Department Operating Department A B C 1 2 Total Overhead costs £ 100,000 £ 115,000 £ 73,000 £ 266,500 £ 289,000 £ 843,500 Number of employees 57 33 132 297 198 717 Square feet of space occupied 12,600 7,100 21,000 42,000 105,000 187,700 Hours of press time 34,000 68,000 102,000 The company allocates service department costs by the step method in the following order: A (number of employees), B (space occupied), and C (hours of press time). The company makes no distinction between variable and fixed service department costs. Required: Using the step method, allocate the service department costs to the operating departments. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) Service Departments Operating Departments A B C 1 2 Total Overhead costs Allocation: Department A: Department B: Department C: Total overhead costs after allocations
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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The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: |
Service Department | Operating Department | |||||
A | B | C | 1 | 2 | Total | |
Overhead costs | £ 100,000 | £ 115,000 | £ 73,000 | £ 266,500 | £ 289,000 | £ 843,500 |
Number of employees | 57 | 33 | 132 | 297 | 198 | 717 |
Square feet of space occupied | 12,600 | 7,100 | 21,000 | 42,000 | 105,000 | 187,700 |
Hours of press time | 34,000 | 68,000 | 102,000 | |||
The company allocates service department costs by the step method in the following order: A (number of employees), B (space occupied), and C (hours of press time). The company makes no distinction between variable and fixed service department costs. |
Required: |
Using the step method, allocate the service department costs to the operating departments. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) |
|
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