Publishing Company has three service departments and two operating departments. Selected data from a recent...
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Accounting
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 | ||||||
Administration | Janitorial | Maintenance | Binding | Printing | Total | ||
Costs | $78,000 | $65,000 | $40,000 | $255,000 | $543,000 | $981,000 | |
Number of employees | 133 | 95 | 380 | 950 | 475 | 2,033 | |
Square feet of space occupied | 5,700 | 22,800 | 19,000 | 38,000 | 133,000 | 218,500 | |
Hours of press time | 11,000 | 32,000 | 43,000 | ||||
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 as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
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