Business, 20.02.2020 23:06 diazsindy

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 $140,000 $105,000 $48,000 $275,000 $430,000 $998,000
Number of employees 60 35 140 315 210 760
ft^2 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.)

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