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Required information Skip to question The Ferre Publishing Company has three service departments and two operating...

Required information

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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 Departments

Operating Departments

Administration Janitorial Maintenance Binding Printing Total
Costs $166,600 $124,950 $57,120 $327,250 $511,700 $1,187,620
Number of employees 60 35 140 315 210 760
Square feet of space occupied 15,000 10,000 20,000 40,000 100,000 185,000
Hours of press time 30,000 60,000 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 as positive. The line should add across to zero. Do not round intermediate calculations.)

Answer is complete but not entirely correct.

Service Departments Operating Departments
Administration Janitorial Maintenance Binding Printing Total
Departmental costs before allocations $166,600 $124,950 $57,120 $327,250 $511,700 $1,187,620
Allocations:
Administration costs (166,600)selected answer correct 8,330selected answer correct 33,320selected answer correct 74,970selected answer correct 49,980selected answer correct
Janitorial costs 0selected answer correct (133,280)selected answer correct 16,660selected answer correct 16,404selected answer incorrect 41,009selected answer incorrect
Maintenance costs 0selected answer correct 0selected answer correct (7,140)selected answer incorrect 323selected answer incorrect 32,323selected answer incorrect
Total costs after allocations $0 $0 $99,960 $418,947 $635,012 $1,153,919

some of the answer are incorrect

plz help

Homework Answers

Answer #1

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.)

Answer is complete but not entirely correct.

Service Departments Operating Departments
Administration Janitorial Maintenance Binding Printing Total
Departmental costs before allocations $166,600 $124,950 $57,120 $327,250 $511,700 $1,187,620
Allocations:
Administration costs (166,600) 8,330 33,320 74,970 49,980
Janitorial costs 0 (133,280) 16,660 33320 83300
Maintenance costs 0 0 -107100 35700 71400
Total costs after allocations $0 $0 0 471240 716380 1187620
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