The Ferre Publishing Company has three service departments and two operating departments. Selected data from a...
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 | $156,800 | $117,600 | $53,760 | $308,000 | $481,600 | $1,117,760 | |
| 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.)
Homework Answers
Requirement:
| Service departments | Operating Departments | ||||||
| Administration | Janitorial | Maintenance | Binding | Printing | Total | ||
| Costs | $ 156,800 | $ 117,600 | $ 53,760 | $ 308,000 | $ 481,600 | $ 1,117,760 | |
| Allocations: | |||||||
| Administration costs (35:140:315:210) | $ (156,800) | $ 7,840 | $ 31,360 | $ 70,560 | $ 47,040 | ||
| Janitorial costs (2:4:10) | $(125,440) | $ 15,680 | $ 31,360 | $ 78,400 | |||
| Maintenance costs (3:6) | $ (100,800) | $ 33,600 | $ 67,200 | ||||
| Total costs after allocation | $ - | $ - | $ - | $ 443,520 | $ 674,240 | $ 1,117,760 | |
Calculation:
| Service departments | Operating Departments | ||||||
| Administration | Janitorial | Maintenance | Binding | Printing | Total | ||
| Costs | $ 156,800 | $ 117,600 | $ 53,760 | $ 308,000 | $ 481,600 | $ 1,117,760 | |
| Allocations: | |||||||
| Administration costs (35:140:315:210) | $ (156,800) | 156800*35/700 | 156800*140/700 | 156800*315/700 | 156800*210/700 | ||
| Janitorial costs (2:4:10) | $ (125,440) | 125440*2/16 | 125440*4/16 | 125440*10/16 | |||
| Maintenance costs (3:6) | $ (100,800) | 100800*3/9 | 100800*6/9 | ||||
| Total costs after allocation | $ - | $ - | $ - | $ 443,520 | $ 674,240 | $ 1,117,760 | |
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The Ferre Publishing Company has three service departments and
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Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to...
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Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to...
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Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in its service department cost allocations: Departmental costs before allocations Employee-hours Space occupied-square feet Service Departments Administration Janitorial $190,000 $70,000 470 340 700 1,100 Operating Departments Groceries Gifts $3,830,000 $340,000 2,690 170 9,200 800 Required: Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate Administration first on the basis of employee-hours and then Janitorial...
Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in its service department cost allocations: Departmental costs before allocations Employee-hours Space occupied square feet Service Departnents Naministration Janitorial $200,000 $60,000 320 700 Operating Departments Groceries $3,900,000 $340,000 2,740 9,200 500 1.400 Required: Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate Administration first on the basis of employee-hours and then Janitorial on the...
Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in its service department cost allocations: Departmental costs before allocations Employee-hours Space occupied-square feet Service Departments Administration Janitorial $190,000 $70,000 460 330 900 1,300 Operating Departments Groceries Gifts $3,890,000 $350,000 2,700 170 9,200 800 Required: Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate Administration first on the basis of employee-hours and then Janitorial...
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