The Ferre Publishing Company has three service departments and two operating departments. Selected data from...

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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: Costs Number of employees Square feet of space occupied Hours of press time Service Departments Administration Janitorial Maintenance $148,400 $111,300 $50,880 60 35 140 15,000 10,000 20,000 Operating Departments Binding Printing $291,500 $455,800 315 210 40,000 100,000 30,000 60,000 Total $1,057,880 760 185,000 90,000 Exercise 4B-3 (Algo) Step-Down Method (L04-11) 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.) Service Departments Administration Janitorial Maintenance $ 148,400 $ 111,300 $ 50,880 Operating Departments Binding Printing $ 291,500 $ 455,800 $ Total 1,057.880 Departmental costs before allocations Allocations: Administration costs (148,400) Janitorial costs Maintenance costs Total costs after allocations $ 0 $ 111,300 $ 50,880 $ 291,500 $ 455,800 $ 909,480 Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Required: Assuming that the company uses the direct 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.) Service Departments Administration Janitorial Maintenance $ 148,400 $ 111,300 $ 50,880 Operating Departments Binding Printing $ 291,500 $ 455,800 $ Total 1,057,880 Departmental costs before allocations Allocations: Administration costs (148,400) (111,300) Janitorial costs Maintenance costs (50,880) Total costs after allocations $ 0 $ 0 $ 0 $ 291,500 $ 455,800 $ 747,300

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