Refer to the data for the Fare Publishing Company in Exercise 4B—3.

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?

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Service Departments Operating Departments Binding Administration Maintenance Janitorial Total Printing Costs $140,000 $105,000 $48,000 140 $275,000 $430,000 $998,000 Number of employees 760 60 35 315 40,000 210 Square feet of space occupied. 15,000 10,000 20,000 100,000 185,000 Hours of press time 60,000 30,000 90,000 ...... .....