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Chapter 4 Q6

The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow:

	Service Departments			Operating Departments
	Administrative	Janitorial	Maintenance	Binding	Printing	Total
Costs	$94,800	$61,400	$39,900	$250,800	$505,000	$951,900
Number of employees	50	70	230	400	320	1,070
Square feet of space occupied	3,300	11,900	8,600	10,500	67,000	101,300
Hours of press time				8,900	29,100	38,000

Required:

Assuming that the company uses the direct method rather than the step-down method to allocate service department costs, how much cost would be assigned to each operating department? (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. Round your answers to the nearest dollar amount.)

	Service Departments Operating Departments Administration Janitorial Maintenance Binding Printing Total Overhead costs $94,800 $61,400 $39,900 $250,800 $505,000 $951,900 Allocations: Administration costs Janitorial costs Maintenance costs Total overhead costs after allocations $94,800 $61,400 $39,900 $250,800 $505,000 $951,900

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