Department costs to the operating department

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Reference no: EM133440973

Question: 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 tine Service Departments Administration Janitorial Maintenance 142,800 107,100 48,960 60 35 140 15,000 20,000 Operating Departments Binding Printing 280,500 438,600 315 210 40,000 100,000 30,00060,000 Total 1,017,960 760 185,000 90,000 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 ).

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 positive.

The fine should add across to zero

Reference no: EM133440973

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