Refer to the data for the Ferre Publishing Company in Exercise 4B€“3.
In Exercise 4B€“3, The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow:

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 operatingdepartment?

Transcribed Image Text:

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