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ID: 2519194 • Letter: T

Question

Tube f Facebook Netflix Pinterest Amazon.com: Online S... Google Docs Inbox - mbarows Homework Rings/Wedding Fossil Grou value 100 points The Ferre Publishing Company has three service departments and two operating departments Selected data from a recent period on the five departments follow Operating Printing 730 Service Departments tive Janitorial Maintenance Binding Departments Administra Total Costs Number of employees Square feet of space occupied Hours of press time $90,200 $71,800 $30,500 $256,900$500,300 949,700 1,320 9,800 71,000106,400 10,500 31,100 41,600 40 12,400 40 210 10,400 300 2,800 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 AdministrationJanitorial Maintenance Operating Departments Binding Printing Total 71800 30,500256,900 500,300 949,700 Overhead costs Allocations Administration costs Janitorial costs Maintenance costs Total overhead costs after allocations

Explanation / Answer

Service Deptt . Allocation base- operating dept

Administrative . No.of employees

Janitorial . Square feet of space

Maintainence . Hours of press time

Note: Administration costs allocated in 730:300

Janitorial costs in 9800:71000

Maintenance costs in 10500:31100

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Administration Janitorial Maintainence Binding Printing Total Overhead costs 90200 71800 31500 256900 500300 949700 Allocation: Administration (90200) 63928 26272 Janitorial (71800) 8708 63092 Maintainence (30500) 7698 22802 Total overhead costs after allocation 0 0 0 337234 612466 949700
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